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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. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






2. Concerned with analyzing whether or not a policy should be used.






3. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






4. Unicorporated entity that has shared ownership.






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






6. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






7. The labor sector highlights the rate of ____ .






8. 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.






9. A policy that affects potential output






10. That efficiency leads to economic prosperity for all.






11. 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.






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






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






14. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






15. The real cost of changing a listed price.






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






17. (n) something of value; a resource; an advantage






18. Money multiplied by velocity equals nominal GDP.






19. An increase in this would cause an increase in the aggregate supply






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






21. The relationship between disposable income and spending on consumable goods and services






22. The goods and services sector focuses largely on the level of ______ .






23. The law that states that as the price of any good or service increases - the quantity of that good or service will increase and vice versa.






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






25. The adding up of individual economic variables to obtain a large - general picture of the economy.






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






27. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






29. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






30. Maximum price that a customer is willing to pay for a good






31. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






32. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






33. The time between the need for a macroeconomic policy and its implementation






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






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






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






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






38. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






39. Payments that the government makes to unemployed workers.






40. Combines pure market and command. Example: Japan






41. Organizations that act as moderators between employers and employees






42. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






43. Caused by changes in the overall economy.






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






45. The international sector emphasizes the ________ rate.






46. Most free-market banking systems are based on __________ reserves.






47. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






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






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






50. The output per employed worker