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






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






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






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






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






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






7. Government policies intended to increase spending and output.






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






9. Organizations that act as moderators between employers and employees






10. That efficiency leads to economic prosperity for all.






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






12. Unicorporated entity that has shared ownership.






13. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






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






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






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






17. The continuing increase in the average level of prices of goods and services over time.






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






19. When the rate of inflation is extremely high.






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






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






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






23. Caused by changes in the overall economy.






24. The amount of workers that are willing to work for a real wage.






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






26. The lowest point of the recession






27. 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.






28. The international sector emphasizes the ________ rate.






29. The output per employed worker






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






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






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






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






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






35. The monetary sector focuses on the ________ rate.






36. Used in the production of final goods - but instead of being consumed - are available for reuse.






37. 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.






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






39. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






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






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






42. Money multiplied by velocity equals nominal GDP.






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






44. 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.






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






46. A free market system that relies on private property ownership and supply and demand






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






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






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






50. 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