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






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






3. An increase in spending due to a perceived increase in wealth.






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






5. 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).






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






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






8. The lowest point of the recession






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






10. The labor sector highlights the rate of ____ .






11. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






12. 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.






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






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






15. Total supply of goods and services in an economy






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






17. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






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






20. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






21. 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.






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






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






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






25. The real cost of changing a listed price.






26. Goods like food and clothing that have a short lifespan.






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






28. The monetary sector focuses on the ________ rate.






29. 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.






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






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






32. 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.






33. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






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






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






37. The beginning of a recession






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






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






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






41. The output per employed worker






42. When an economic unit makes more than it spends






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






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






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






46. 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.






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






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






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






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