Test your basic knowledge |

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






2. Money multiplied by velocity equals nominal GDP.






3. When an economic unit makes more than it spends






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






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






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






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






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






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






10. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






11. 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.






12. 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.






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






14. 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.






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






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






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






18. Caused by changes in the overall economy.






19. 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.






20. 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).






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






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






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






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






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






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






27. Combines pure market and command. Example: Japan






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






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






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






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






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






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






34. Payments that the government makes to unemployed workers.






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






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






37. The lowest point of the recession






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






39. The real cost of changing a listed price.






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






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






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






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






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






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






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






47. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






48. The labor sector highlights the rate of ____ .






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






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