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CLEP Macroeconomics - 3

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.

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

3. The percentage of working-age people within the labor force

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

5. A measure of overall price levels at a specific point in the price index.

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

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

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

9. Extreme economic growth

10. When an economic unit makes more than it spends

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

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

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

14. Total tax paid divided by total (taxable) income - as a percentage.

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

16. 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.

17. 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.

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

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

20. The lowest point of the recession

21. Money multiplied by velocity equals nominal GDP.

22. When inflation suddenly deviates from its normal course.

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

24. 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

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

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

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

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

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

30. Unicorporated entity that has shared ownership.

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

32. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)

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

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

35. The beginning of a recession

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

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

38. Combines pure market and command. Example: Japan

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

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

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

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

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

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

45. 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).

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

47. When the rate of inflation is extremely high.

48. The output per employed worker

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

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