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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. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






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






9. The lowest point of the recession






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






11. Goods that are used in the production of final goods.






12. The beginning of a recession






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






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






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






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






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






18. When the rate of inflation is extremely high.






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






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






21. Payments that the government makes to unemployed workers.






22. A result of there only being one buyer of a resource input - good - or service.






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






24. When an economic unit makes more than it spends






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






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






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






28. A policy that affects potential output






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






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






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






32. A large - unexpected change in the cost of resources.






33. Patents - Goodwill - and Trademarks (lack physical substance)






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






35. 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.






36. 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.






37. That efficiency leads to economic prosperity for all.






38. 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






39. 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.






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






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






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






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






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






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






46. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply






47. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






48. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






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