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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. Concerned with analyzing whether or not a policy should be used.






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






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






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






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






6. Unicorporated entity that has shared ownership.






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






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






9. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






10. When inflation suddenly deviates from its normal course.






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






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






13. Caused by changes in the overall economy.






14. Extreme economic growth






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






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






17. 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.






18. A macroeconomic policy that directly affects the structure and various institutions of an economy






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






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






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






22. Payments that the government makes to unemployed workers.






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






24. Combines pure market and command. Example: Japan






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






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






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






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






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






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






31. 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).






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






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






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






35. The lowest point of the recession






36. The output per employed worker






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






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






39. When the rate of inflation is extremely high.






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






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






42. Government policies intended to increase spending and output.






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






44. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






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






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






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






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






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






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