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






3. A macroeconomic policy that directly affects the structure and various institutions of an economy






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






5. Government policies intended to increase spending and output.






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






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






8. The relationship between disposable income and spending on consumable goods and services






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






10. The monetary sector focuses on the ________ rate.






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






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






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






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






15. Payments that the government makes to unemployed workers.






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






17. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






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






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






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






21. The beginning of a recession






22. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






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






24. 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).






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






26. 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






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






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






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






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






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






32. When the rate of inflation is extremely high.






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






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






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






36. The government office that is responsible for projecting federal surpluses and deficits






37. Organizations that act as moderators between employers and employees






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






39. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






46. The output per employed worker






47. 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.






48. 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.






49. 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.






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