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






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






3. The international sector emphasizes the ________ rate.






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






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






7. Total supply of goods and services in an economy






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






9. The monetary sector focuses on the ________ rate.






10. 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.






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






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






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






14. 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.






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






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






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






18. The labor sector highlights the rate of ____ .






19. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






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






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






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






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






24. Combines pure market and command. Example: Japan






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






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






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






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






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






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






31. 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






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






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






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






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






36. That efficiency leads to economic prosperity for all.






37. 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






38. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






39. When inflation suddenly deviates from its normal course.






40. Caused by changes in the overall economy.






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






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






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






44. 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.






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






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






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






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






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






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