Test your basic knowledge |

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 labor sector highlights the rate of ____ .






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






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






4. The amount of workers that are willing to work for a real wage.






5. 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






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






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






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






9. Payments that the government makes to unemployed workers.






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






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






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






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






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






15. Used to demonstrate shifts in income distribution among a population over time.






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


17. Extreme economic growth






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






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






20. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






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






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






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






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






25. 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






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






27. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






29. The output per employed worker






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






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






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






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






34. The monetary sector focuses on the ________ rate.






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






36. The international sector emphasizes the ________ rate.






37. A policy that affects potential output






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






39. 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.






40. Organizations that act as moderators between employers and employees






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


42. 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.






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






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






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






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






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






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






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






50. 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.