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






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






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






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






5. 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






6. 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.






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






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






9. Government policies intended to increase spending and output.






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






11. When inflation suddenly deviates from its normal course.






12. Describes how the economy directly effects the actions policymakers take.






13. 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.






14. Natural Rate of Unemployment - a rate that will always exist






15. 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.






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






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






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






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






20. The real cost of changing a listed price.






21. A policy that affects potential output






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






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






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






25. 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.






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






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






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






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






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






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






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






33. 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.






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






35. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






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






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






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






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






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






41. Organizations that act as moderators between employers and employees






42. Caused by changes in the overall economy.






43. 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.






44. A record of economic increases and decreases over time.






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






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






47. Government policies aimed at stabilizing the economy by eliminating output gaps






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






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






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