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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 rate of price increase on all things except food and energy






2. The monetary sector focuses on the ________ rate.






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






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






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






7. The beginning of a recession






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






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






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






11. Total supply of goods and services in an economy






12. Money multiplied by velocity equals nominal GDP.






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






14. The labor sector highlights the rate of ____ .






15. 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.






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






17. 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.






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






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






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






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






22. The total value of goods and services produced in a country valued at current prices.






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






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






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






26. 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.






27. 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.






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






29. The real cost of changing a listed price.






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






31. 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.






32. 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.






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






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






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






36. Payments that the government makes to unemployed workers.






37. Caused by changes in the overall economy.






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






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






40. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






47. When inflation suddenly deviates from its normal course.






48. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply






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






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