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






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






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






4. Caused by changes in the overall economy.






5. When the rate of inflation is extremely high.






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






7. 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).






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






9. When inflation suddenly deviates from its normal course.






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






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






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






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






14. An increase in this would cause an increase in the aggregate supply






15. 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






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






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






18. 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.






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






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






21. Real Estate - Equipment - and Cash (physical assets)






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






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






24. The increase in total benefit that comes from producing one additional unit.






25. Used to demonstrate shifts in income distribution among a population over time.






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






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






28. Total supply of goods and services in an economy






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






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

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






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






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






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






35. 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.






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






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






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






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






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






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






42. That efficiency leads to economic prosperity for all.






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






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






45. 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.






46. The international sector emphasizes the ________ rate.






47. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






50. Government policies intended to increase spending and output.