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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. 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).






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






3. Money multiplied by velocity equals nominal GDP.






4. That efficiency leads to economic prosperity for all.






5. When inflation suddenly deviates from its normal course.






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






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






8. 1 percent more unemployment results in 2 percent less output.


9. The international sector emphasizes the ________ rate.






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






11. 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.






12. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






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


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






15. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






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






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. Government policies intended to increase spending and output.






20. 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






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






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






23. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






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






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


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






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






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






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






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






31. Caused by changes in the overall economy.






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






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






34. 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.






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






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






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






38. 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.






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






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






41. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






42. Organizations that act as moderators between employers and employees






43. A result of there only being one buyer of a resource input - good - or service.






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






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






46. 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.






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






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






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






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