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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 time between the need for a macroeconomic policy and its implementation






2. The labor sector highlights the rate of ____ .






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






4. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






5. When an economic unit makes more than it spends






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






7. The output per employed worker






8. Total supply of goods and services in an economy






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






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






11. Money multiplied by velocity equals nominal GDP.






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






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






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






15. When inflation suddenly deviates from its normal course.






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






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






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






19. 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.






20. The monetary sector focuses on the ________ rate.






21. A policy that affects potential output






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






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






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






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






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






27. 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






28. Government policies intended to increase spending and output.






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






30. The part of economics study that looks at the operation of a nation's economy as a whole






31. 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.






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






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






34. That efficiency leads to economic prosperity for all.






35. Extreme economic growth






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






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






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






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






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






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






42. The beginning of a recession






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






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






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






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






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. 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.






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






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