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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. Payments that the government makes to unemployed workers.






2. A measure of overall price levels at a specific point in the price index.






3. Organizations that act as moderators between employers and employees






4. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






5. The annual percentage rate of change in price level reflected by price indexes






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






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






8. The portion of planned aggregate expenditure that is not based on output






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






10. Unicorporated entity that has shared ownership.






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






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






13. The ease with which an asset can be converted to currency.






14. The international sector emphasizes the ________ rate.






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






16. Business entity which legally has no separate existence from its owner.






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






18. The price of a good or service in relation to the price of other goods and services.






19. The monetary sector focuses on the ________ rate.






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






21. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






22. The speed that money changes hands in order to buy and sell final goods and services.






23. Natural Rate of Unemployment - a rate that will always exist






24. The slow change in inflation from year to year in industrialized nations






25. The increase in total cost that comes from producing one additional unit of a specific good or service.






26. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






27. That efficiency leads to economic prosperity for all.






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






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






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






31. Government policies intended to increase spending and output.






32. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






33. The beginning of a recession






34. The total value of goods and services produced in a country valued at current prices.






35. Money multiplied by velocity equals nominal GDP.






36. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






37. When the people believe that the nation's central bank will keep inflation rates low.






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






39. The movement of workers between jobs - companies - and industries






40. Combines pure market and command. Example: Japan






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






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






43. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






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






45. Total tax paid divided by total (taxable) income - as a percentage.






46. The lowest point of the recession






47. When people's expectations of future inflation do not change even though inflation rates change.






48. Caused by changes in the overall economy.






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






50. The part of economics study that looks at the operation of a nation's economy as a whole






Can you answer 50 questions in 15 minutes?



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