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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. Government policies intended to increase spending and output.






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






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

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






5. 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).






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






7. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






8. The lowest point of the recession






9. The international sector emphasizes the ________ rate.






10. 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.






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






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






13. Combines pure market and command. Example: Japan






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






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






16. 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.






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






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






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






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






21. Organizations that act as moderators between employers and employees






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






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






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






25. 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.






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






27. When inflation suddenly deviates from its normal course.






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






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






30. Total supply of goods and services in an economy






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






32. Money multiplied by velocity equals nominal GDP.






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






34. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






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






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






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






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






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






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






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






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






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






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






45. That efficiency leads to economic prosperity for all.






46. 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.






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






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






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






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