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






2. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






3. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






4. When inflation suddenly deviates from its normal course.






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






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






7. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






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






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






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






11. 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.






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






13. Natural Rate of Unemployment - a rate that will always exist






14. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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






16. 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.






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






18. The labor sector highlights the rate of ____ .






19. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






21. When an economic unit makes more than it spends






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






23. 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).






24. Total supply of goods and services in an economy






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






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






27. The international sector emphasizes the ________ rate.






28. Caused by changes in the overall economy.






29. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






30. 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.






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






32. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






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






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






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






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






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






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






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






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






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






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






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






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






46. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






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






48. Unicorporated entity that has shared ownership.






49. 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.






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






Can you answer 50 questions in 15 minutes?



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