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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 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.






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






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






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






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






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






7. 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.






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






9. 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






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






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






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






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






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






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






16. 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.






17. The monetary sector focuses on the ________ rate.






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






19. 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.






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






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






22. The price of a good or service in relation to the price of other goods and services.






23. 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.






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






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






26. The international sector emphasizes the ________ rate.






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






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






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






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






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






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






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






34. The real cost of changing a listed price.






35. The beginning of a recession






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






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






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






39. That efficiency leads to economic prosperity for all.






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






41. When an economic unit makes more than it spends






42. Unicorporated entity that has shared ownership.






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






44. Extreme economic growth






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






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






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






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






49. The lowest point of the recession






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