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






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






3. A policy that affects potential output






4. 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.






5. Combines pure market and command. Example: Japan






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






7. When inflation suddenly deviates from its normal course.






8. When the rate of inflation is extremely high.






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






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






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






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






13. Natural Rate of Unemployment - a rate that will always exist






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






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






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






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






18. The monetary sector focuses on the ________ rate.






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






20. Government policies intended to increase spending and output.






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






22. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






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






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






25. Goods and services sector - Labor sector - monetary sector - international sector.






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






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






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






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






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






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






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






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






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






35. 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.






36. Business entity which legally has no separate existence from its owner.






37. 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.






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






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






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






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






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






43. The international sector emphasizes the ________ rate.






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






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






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






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






48. A Scottish man (1723-1790) who is known as the father of modern economics.






49. Total supply of goods and services in an economy






50. When both producers and consumers are satisfied with their quantities at market price.