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






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

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






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






5. Total supply of goods and services in an economy






6. Organizations that act as moderators between employers and employees






7. 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.






8. 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).






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






10. The lowest point of the recession






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






12. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






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






15. A free market system that relies on private property ownership and supply and demand






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






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






18. Extreme economic growth






19. The slow change in inflation from year to year in industrialized nations






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






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






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






23. The output per employed worker






24. Caused by changes in the overall economy.






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






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






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






28. 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.






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

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






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






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






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






34. That efficiency leads to economic prosperity for all.






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






36. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






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






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






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






40. 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.






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






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






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






44. A quantity that is measured in real terms - the actual quantity of a good or service






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






46. A policy that affects potential output






47. 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






48. 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.






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






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






Can you answer 50 questions in 15 minutes?



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