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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 relationship between disposable income and spending on consumable goods and services






2. The international sector emphasizes the ________ rate.






3. A policy that affects potential output






4. 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.






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






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






7. 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.






8. The adding up of individual economic variables to obtain a large - general picture of the economy.






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






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






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






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






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






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






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






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






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






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






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






20. 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.






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






22. Unicorporated entity that has shared ownership.






23. When both producers and consumers are satisfied with their quantities at market price.






24. Payments that the government makes to unemployed workers.






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






26. When an economic unit makes more than it spends






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






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






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






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






31. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






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






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






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






36. The lowest point of the recession






37. Organizations that act as moderators between employers and employees






38. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






39. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






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






41. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






42. Goods that are used in the production of final goods.






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






44. Government policies intended to increase spending and output.






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






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






47. 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).






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






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






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