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






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






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






4. 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






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






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






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






8. When inflation suddenly deviates from its normal course.






9. The international sector emphasizes the ________ rate.






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






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






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






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






14. The monetary sector focuses on the ________ rate.






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






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






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






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






19. The beginning of a recession






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






21. Organizations that act as moderators between employers and employees






22. Unicorporated entity that has shared ownership.






23. That efficiency leads to economic prosperity for all.






24. The relationship between disposable income and spending on consumable goods and services






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






26. Goods not counted in the nation's GDP.






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

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






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






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






31. Total supply of goods and services in an economy






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






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






34. 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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35. There is an ___________ ___ when aggregate output is above potential output






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






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






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






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






40. Combines pure market and command. Example: Japan






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






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






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






44. Extreme economic growth






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






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






47. The lowest point of the recession






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






49. The real cost of changing a listed price.






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