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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. When an economic unit makes more than it spends






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






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






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






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






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






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






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






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






10. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.






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






12. The labor sector highlights the rate of ____ .






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






14. 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.






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






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






17. The real cost of changing a listed price.






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






19. A policy that affects potential output






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






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






22. The lowest point of the recession






23. 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.






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






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






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






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






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






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






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






31. The ease with which an asset can be converted to currency.






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






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






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






35. Payments that the government makes to unemployed workers.






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






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






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






39. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






46. 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.






47. When prices fall consistently over time - leading to negative inflation.






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






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






50. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.