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






2. Total supply of goods and services in an economy






3. Money multiplied by velocity equals nominal GDP.






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






5. Organizations that act as moderators between employers and employees






6. The labor sector highlights the rate of ____ .






7. The lowest point of the recession






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






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






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






11. Payments that the government makes to unemployed workers.






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






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






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






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






16. That efficiency leads to economic prosperity for all.






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






18. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






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






21. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost


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






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






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






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






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






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






28. When an economic unit makes more than it spends






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






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






31. The time period between a policy's implementation and its desired effects on an economy.






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






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






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






35. Unicorporated entity that has shared ownership.






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






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






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






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






40. 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






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






42. 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.






43. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






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






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






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






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






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