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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. Extreme economic growth






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






3. When inflation suddenly deviates from its normal course.






4. That efficiency leads to economic prosperity for all.






5. 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.






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






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






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






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






10. The maximum amount that an economy can output over a period of time






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






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






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






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






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






16. 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).






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






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






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






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






21. 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.






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






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






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






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






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






27. Unicorporated entity that has shared ownership.






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






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






30. The price of a good or service in relation to the price of other goods and services.






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






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






33. 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.






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






35. The portion of planned aggregate expenditure that is not based on output






36. The lowest point of the recession






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






38. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






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






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






41. Money multiplied by velocity equals nominal GDP.






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






43. Government policies intended to increase spending and output.






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






45. 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.






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






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






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






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






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