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






2. A policy that affects potential output






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






4. 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.






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






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






7. Organizations that act as moderators between employers and employees






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






9. 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.






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






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






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






13. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






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






15. Extreme economic growth






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






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






18. 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.






19. The monetary sector focuses on the ________ rate.






20. The international sector emphasizes the ________ rate.






21. Combines pure market and command. Example: Japan






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






23. Caused by changes in the overall economy.






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






25. The speed that money changes hands in order to buy and sell final goods and services.






26. 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.






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






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






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






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






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






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






33. 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






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






35. The real cost of changing a listed price.






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






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






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






39. When an economic unit makes more than it spends






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






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






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






43. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






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






46. 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.






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






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






49. 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.






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