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






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






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






4. The international sector emphasizes the ________ rate.






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






6. Payments that the government makes to unemployed workers.






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






8. 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






9. 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.






10. When the rate of inflation is extremely high.






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






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






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






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






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






16. Total supply of goods and services in an economy






17. A result of there only being one buyer of a resource input - good - or service.






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






19. The real cost of changing a listed price.






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. The rate of price increase on all things except food and energy






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






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






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






25. 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.






26. The labor sector highlights the rate of ____ .






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






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






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






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






31. The output per employed worker






32. Combines pure market and command. Example: Japan






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






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






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






36. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






37. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






39. Extreme economic growth






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






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






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






43. The monetary sector focuses on the ________ rate.






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






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






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






47. The lowest point of the recession






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






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






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