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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. A measure of overall price levels at a specific point in the price index.






2. Combines pure market and command. Example: Japan






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






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






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






6. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






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






10. Total supply of goods and services in an economy






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






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






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






14. The beginning of a recession






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






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






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






18. That efficiency leads to economic prosperity for all.






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






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






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






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






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






24. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






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






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






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






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






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






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






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






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






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






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






38. Unicorporated entity that has shared ownership.






39. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






40. 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.






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






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






43. 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.






44. Payments that the government makes to unemployed workers.






45. When an economic unit makes more than it spends






46. The lowest point of the recession






47. The real cost of changing a listed price.






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






49. When the rate of inflation is extremely high.






50. The total value of goods and services produced in a country valued at current prices.