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






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






3. When inflation suddenly deviates from its normal course.






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






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






6. 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.






7. The maximum amount that an economy can output over a period of time






8. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






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

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






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






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






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






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






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






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






17. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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






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






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






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






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






23. Organizations that act as moderators between employers and employees






24. Extreme economic growth






25. Business entity which legally has no separate existence from its owner.






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






27. The goods and services sector focuses largely on the level of ______ .






28. The real cost of changing a listed price.






29. 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.






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






31. A policy that affects potential output






32. 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






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






34. When an economic unit makes more than it spends






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






36. The monetary sector focuses on the ________ rate.






37. The lowest point of the recession






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






39. Total supply of goods and services in an economy






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






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






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






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






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






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






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






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






48. Combines pure market and command. Example: Japan






49. The price of a good or service in relation to the price of other goods and services.






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