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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 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.






2. 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.






3. Government policies intended to increase spending and output.






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






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






6. 1 percent more unemployment results in 2 percent less output.

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






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






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






10. 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.






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






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






13. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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






15. 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.






16. Caused by changes in the overall economy.






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






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






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






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






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






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






23. The monetary sector focuses on the ________ rate.






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






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






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






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






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

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29. Organizations that act as moderators between employers and employees






30. 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).






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






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






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






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






35. The difference between the price received by the seller and the seller's reservation price

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






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






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






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






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






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






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






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






44. 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.






45. Combines pure market and command. Example: Japan






46. When an economic unit makes more than it spends






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






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






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






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






Can you answer 50 questions in 15 minutes?



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