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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. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






2. 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.






3. 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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4. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






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






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






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






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






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






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






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






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






13. The lowest point of the recession






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






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






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






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






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






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






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






21. Organizations that act as moderators between employers and employees






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






23. 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.






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






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






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






27. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






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






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






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






31. 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.






32. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






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






34. When inflation suddenly deviates from its normal course.






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






36. Used in the production of final goods - but instead of being consumed - are available for reuse.






37. 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.






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






39. Combines pure market and command. Example: Japan






40. 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






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






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






43. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






44. 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.






45. When an economic unit makes more than it spends






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






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






48. When the rate of inflation is extremely high.






49. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






50. 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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