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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. 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.






2. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






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






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






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






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

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






8. The output per employed worker






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






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






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






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






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






14. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






16. Government policies aimed at stabilizing the economy by eliminating output gaps






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






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






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






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






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






22. Unicorporated entity that has shared ownership.






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






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

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26. When inflation suddenly deviates from its normal course.






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






28. Caused by changes in the overall economy.






29. Payments that the government makes to unemployed workers.






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






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






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






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






34. Total supply of goods and services in an economy






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






36. A free market system that relies on private property ownership and supply and demand






37. The labor sector highlights the rate of ____ .






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






39. The portion of planned aggregate expenditure that is not based on output






40. The monetary sector focuses on the ________ rate.






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






42. Organizations that act as moderators between employers and employees






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






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






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






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






47. 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.






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






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






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