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






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






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






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






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






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






7. Unicorporated entity that has shared ownership.






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






9. Extreme economic growth






10. The labor sector highlights the rate of ____ .






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






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






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






14. The international sector emphasizes the ________ rate.






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






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






17. A record of economic increases and decreases over time.






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






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






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






21. The real cost of changing a listed price.






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






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






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






25. 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






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






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






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






29. 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.






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






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






32. That efficiency leads to economic prosperity for all.






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






34. Organizations that act as moderators between employers and employees






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






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






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






38. 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).






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






40. The continuing increase in the average level of prices of goods and services over time.






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






42. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






43. Combines pure market and command. Example: Japan






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


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






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






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






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






49. 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.






50. Total supply of goods and services in an economy