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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 lowest point of the recession






2. Caused by changes in the overall economy.






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






4. When an economic unit makes more than it spends






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






6. When the rate of inflation is extremely high.






7. 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.






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






9. Unicorporated entity that has shared ownership.






10. A policy that affects potential output






11. The beginning of a recession






12. The labor sector highlights the rate of ____ .






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






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






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






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






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






18. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






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






20. The monetary sector focuses on the ________ rate.






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






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






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






24. Government policies intended to increase spending and output.






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






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






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






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






29. The movement of workers between jobs - companies - and industries






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






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






32. 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






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






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






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






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






37. When prices fall consistently over time - leading to negative inflation.






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






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






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






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






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






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






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






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






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






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






49. That efficiency leads to economic prosperity for all.






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