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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 beginning of a recession






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






3. Extreme economic growth






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






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






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






7. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






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






9. That efficiency leads to economic prosperity for all.






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






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






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






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






14. The monetary sector focuses on the ________ rate.






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






16. 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.






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






18. 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.






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






20. The real cost of changing a listed price.






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






22. 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






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






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






25. Payments that the government makes to unemployed workers.






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






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


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






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






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






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






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






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






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






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






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






37. Unicorporated entity that has shared ownership.






38. 1 percent more unemployment results in 2 percent less output.


39. When inflation suddenly deviates from its normal course.






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






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






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






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






44. Caused by changes in the overall economy.






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






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






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


48. 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






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






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