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






2. The beginning of a recession






3. 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.






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






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






6. The output per employed worker






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






8. When the rate of inflation is extremely high.






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






10. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






11. Goods not counted in the nation's GDP.






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






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






14. 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.






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






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






17. When inflation suddenly deviates from its normal course.






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






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






20. Combines pure market and command. Example: Japan






21. 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






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






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






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






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






26. Organizations that act as moderators between employers and employees






27. The ease with which an asset can be converted to currency.






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






29. A policy that affects potential output






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






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






32. Government policies intended to increase spending and output.






33. Caused by changes in the overall economy.






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






35. 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.






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






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






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






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






40. 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.






41. Total supply of goods and services in an economy






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






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






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






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






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






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






48. A measure of overall price levels at a specific point in the price index.






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






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