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






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






3. 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.






4. When an economic unit makes more than it spends






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






6. When the rate of inflation is extremely high.






7. The international sector emphasizes the ________ rate.






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






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






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






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






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






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






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






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






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






17. 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.






18. That efficiency leads to economic prosperity for all.






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






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. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






28. 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.






29. 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.






30. The lowest point of the recession






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






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






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






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






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






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






37. The labor sector highlights the rate of ____ .






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






39. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






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






41. Caused by changes in the overall economy.






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






43. The portion of planned aggregate expenditure that is not based on output






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






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






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






47. Combines pure market and command. Example: Japan






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






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






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