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






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






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






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






5. When inflation suddenly deviates from its normal course.






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






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






8. Government policies intended to increase spending and output.






9. Total tax paid divided by total (taxable) income - as a percentage.






10. 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.






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






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






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. Unicorporated entity that has shared ownership.






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






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






17. The lowest point of the recession






18. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






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






22. 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.






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






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






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






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






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






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






29. Combines pure market and command. Example: Japan






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






31. When an economic unit makes more than it spends






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






33. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






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






41. The percentage of working-age people within the labor force






42. Caused by changes in the overall economy.






43. The degree to which people have access to goods and services that make their lives better.






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






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






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






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






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






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






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