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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. Natural Rate of Unemployment - a rate that will always exist






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






3. The lowest point of the recession






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






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






6. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






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






8. The output per employed worker






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






10. Government policies intended to increase spending and output.






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






12. Money multiplied by velocity equals nominal GDP.






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






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






15. 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






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. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






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






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






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






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






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






24. 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.






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






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






27. Business entity which legally has no separate existence from its owner.






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






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






30. 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.






31. Organizations that act as moderators between employers and employees






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






33. The monetary sector focuses on the ________ rate.






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






35. 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.






36. Caused by changes in the overall economy.






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






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






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






40. (n) something of value; a resource; an advantage






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






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






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






44. When the rate of inflation is extremely high.






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






46. When an economic unit makes more than it spends






47. When inflation suddenly deviates from its normal course.






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






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






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