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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. The part of economics study that looks at the operation of a nation's economy as a whole






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






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






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






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






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






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






8. Most free-market banking systems are based on __________ reserves.






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






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






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






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






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






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


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






16. Extreme economic growth






17. 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.






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






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






20. The labor sector highlights the rate of ____ .






21. Caused by changes in the overall economy.






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






23. 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.






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






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






26. The rise in taxes that occurs when before-tax income increases by one dollar






27. 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.






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






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






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






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






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






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






34. The international sector emphasizes the ________ rate.






35. When inflation suddenly deviates from its normal course.






36. 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.






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






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






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






40. The lowest point of the recession






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






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






43. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service


44. The beginning of a recession






45. The monetary sector focuses on the ________ rate.






46. Organizations that act as moderators between employers and employees






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






48. When the rate of inflation is extremely high.






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






50. 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