Test your basic knowledge |

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






2. 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.






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






4. 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).






5. The international sector emphasizes the ________ rate.






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






7. Unicorporated entity that has shared ownership.






8. When the rate of inflation is extremely high.






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






10. The difference between the price received by the seller and the seller's reservation price


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






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






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






14. Organizations that act as moderators between employers and employees






15. The real cost of changing a listed price.






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






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






18. The monetary sector focuses on the ________ rate.






19. 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.






20. Caused by changes in the overall economy.






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






22. Extreme economic growth






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






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






25. 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.






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






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






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






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






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






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






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






33. Describes how the economy directly effects the actions policymakers take.






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






35. When inflation suddenly deviates from its normal course.






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






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


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






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






40. Payments that the government makes to unemployed workers.






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






42. 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.






43. When an economic unit makes more than it spends






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






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






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






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






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






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






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