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






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






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






4. 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






5. The labor sector highlights the rate of ____ .






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






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






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






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






10. When an economic unit makes more than it spends






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






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






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






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






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






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






17. Represents the governmental tax rate that will best maximize tax revenues.






18. 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.






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






20. When the rate of inflation is extremely high.






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






22. Total tax paid divided by total (taxable) income - as a percentage.






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






24. Money multiplied by velocity equals nominal GDP.






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






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






27. 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






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






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






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


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






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






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






34. 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.






35. Combines pure market and command. Example: Japan






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






37. Payments that the government makes to unemployed workers.






38. 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).






39. 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.






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






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






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






43. Most free-market banking systems are based on __________ reserves.






44. Extreme economic growth






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






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






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






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






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






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