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






2. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






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






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






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






7. Used to demonstrate shifts in income distribution among a population over time.






8. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






9. 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.






10. Goods not counted in the nation's GDP.






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






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






13. Caused by changes in the overall economy.






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






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






16. 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.






17. Goods like food and clothing that have a short lifespan.






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






19. When an economic unit makes more than it spends






20. Money multiplied by velocity equals nominal GDP.






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






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






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






24. The labor sector highlights the rate of ____ .






25. The monetary sector focuses on the ________ rate.






26. That efficiency leads to economic prosperity for all.






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






28. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






29. 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






30. 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.






31. 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






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






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






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






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






36. Extreme economic growth






37. Government policies aimed at stabilizing the economy by eliminating output gaps






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






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






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






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






42. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






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






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






45. A large - unexpected change in the cost of resources.






46. The international sector emphasizes the ________ rate.






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






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






49. The beginning of a recession






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