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






2. 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.






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






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






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






6. 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.






7. Money multiplied by velocity equals nominal GDP.






8. The beginning of a recession






9. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






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






11. That efficiency leads to economic prosperity for all.






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






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






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






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






16. When both producers and consumers are satisfied with their quantities at market price.






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






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






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






20. Extreme economic growth






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






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






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






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






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






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






27. Unicorporated entity that has shared ownership.






28. Legal entity that has received a charter from a state or federal government.






29. When inflation suddenly deviates from its normal course.






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






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






32. The lowest point of the recession






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






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






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






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. Goods not counted in the nation's GDP.






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






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






40. The international sector emphasizes the ________ rate.






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






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






43. When the rate of inflation is extremely high.






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






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






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






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






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






49. The monetary sector focuses on the ________ rate.






50. Organizations that act as moderators between employers and employees