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






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






3. The output per employed worker






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






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






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






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






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






9. Extreme economic growth






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






11. Unicorporated entity that has shared ownership.






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






13. 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






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






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






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






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






18. 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.






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






20. Caused by changes in the overall economy.






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






22. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






24. Payments that the government makes to unemployed workers.






25. The lowest point of the recession






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






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






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






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






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






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






32. 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.






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






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






35. The monetary sector focuses on the ________ rate.






36. 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






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






38. That efficiency leads to economic prosperity for all.






39. 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.






40. The rate of price increase on all things except food and energy






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






42. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






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






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






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






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






48. Combines pure market and command. Example: Japan






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






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