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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. 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.






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






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






4. The beginning of a recession






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






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






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






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






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






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






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






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






13. 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.






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






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






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






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






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






19. Organizations that act as moderators between employers and employees






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






21. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






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






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






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






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






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






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






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






29. The real cost of changing a listed price.






30. 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.






31. An increase in spending due to a perceived increase in wealth.






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






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






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






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






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






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






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






40. 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.






41. Concerned with analyzing whether or not a policy should be used.






42. The amount of workers that are willing to work for a real wage.






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






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






45. Money multiplied by velocity equals nominal GDP.






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






47. The difference between the price received by the seller and the seller's reservation price


48. 1 percent more unemployment results in 2 percent less output.


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






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