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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 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.






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






3. Payments that the government makes to unemployed workers.






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






5. 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.






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






7. The slow change in inflation from year to year in industrialized nations






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






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






10. When an economic unit makes more than it spends






11. That efficiency leads to economic prosperity for all.






12. The beginning of a recession






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






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






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






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






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






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






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






20. The degree to which people have access to goods and services that make their lives better.






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






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






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






24. 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.






25. The output per employed worker






26. 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.






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






28. The labor sector highlights the rate of ____ .






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






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






31. The international sector emphasizes the ________ rate.






32. The total planned spending on final goods and services.






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






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






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






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






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






38. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






39. 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.






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






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






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






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






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






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






46. Unicorporated entity that has shared ownership.






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






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






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