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CLEP Macroeconomics - 3

Subjects : clep, economics
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






2. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






3. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






4. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






5. The beginning of a recession






6. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






7. Organizations that act as moderators between employers and employees






8. When inflation suddenly deviates from its normal course.






9. The degree to which people have access to goods and services that make their lives better.






10. The amount of workers that are willing to work for a real wage.






11. That efficiency leads to economic prosperity for all.






12. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






13. A result of there only being one buyer of a resource input - good - or service.






14. An increase in spending due to a perceived increase in wealth.






15. The basic assumption of this model is that in the short run - firms meet demand at present price.






16. When prices fall consistently over time - leading to negative inflation.






17. The government office that is responsible for projecting federal surpluses and deficits






18. A policy that affects potential output






19. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






20. The time period between a policy's implementation and its desired effects on an economy.






21. Goods and services sector - Labor sector - monetary sector - international sector.






22. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply






23. Total supply of goods and services in an economy






24. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






25. The maximum amount that an economy can output over a period of time






26. The rate of price increase on all things except food and energy






27. The difference between the price received by the seller and the seller's reservation price

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28. Goods that are used in the production of final goods.






29. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






30. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






31. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






32. The rise in taxes that occurs when before-tax income increases by one dollar






33. There is an ___________ ___ when aggregate output is above potential output






34. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






35. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






36. Represents the governmental tax rate that will best maximize tax revenues.






37. A record of economic increases and decreases over time.






38. Describes how the economy directly effects the actions policymakers take.






39. The increase in total benefit that comes from producing one additional unit.






40. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






41. A Scottish man (1723-1790) who is known as the father of modern economics.






42. Real Estate - Equipment - and Cash (physical assets)






43. Caused by changes in the overall economy.






44. A macroeconomic policy that directly affects the structure and various institutions of an economy






45. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.






46. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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47. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






48. The level of output where output equals planned aggregate expenditure






49. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






50. Government policies intended to increase spending and output.






Can you answer 50 questions in 15 minutes?



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