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






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






3. When inflation suddenly deviates from its normal course.






4. Unicorporated entity that has shared ownership.






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






6. The output per employed worker






7. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply






8. Money multiplied by velocity equals nominal GDP.






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






10. 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).






11. Caused by changes in the overall economy.






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






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






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






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






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






17. The international sector emphasizes the ________ rate.






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






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






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






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






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






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






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






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






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






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






28. 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






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






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






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






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






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






34. (n) something of value; a resource; an advantage






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






36. A policy that affects potential output






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






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






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






40. The beginning of a recession






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






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






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






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






45. 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.






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






47. 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.






48. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






49. 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.






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