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






2. Payments that the government makes to unemployed workers.






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






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






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






6. That efficiency leads to economic prosperity for all.






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


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






9. The total planned spending on final goods and services.






10. 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.






11. A quantity that is measured in real terms - the actual quantity of a good or service






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






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






14. The beginning of a recession






15. Total supply of goods and services in an economy






16. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






18. 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






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






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






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






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






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






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






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






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. 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.






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






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






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






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






32. Government policies intended to increase spending and output.






33. When the rate of inflation is extremely high.






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






35. Money multiplied by velocity equals nominal GDP.






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






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






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






39. When an economic unit makes more than it spends






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






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






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 movement of workers between jobs - companies - and industries






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






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






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






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






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






49. The lowest point of the recession






50. Patents - Goodwill - and Trademarks (lack physical substance)