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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. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






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






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






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






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






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






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






8. Government policies intended to increase spending and output.






9. The lowest point of the recession






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






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


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






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






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






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






16. The real cost of changing a listed price.






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






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






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






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






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






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






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






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






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






27. Payments that the government makes to unemployed workers.






28. The beginning of a recession






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






30. Total supply of goods and services in an economy






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






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






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


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






35. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






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






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






38. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






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






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






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






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






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






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






45. The part of economics study that looks at the operation of a nation's economy as a whole






46. Combines pure market and command. Example: Japan






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






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






49. 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.






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