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






2. Maximum price that a customer is willing to pay for a good






3. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






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






5. The output per employed worker






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






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

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






9. The annual percentage rate of change in price level reflected by price indexes






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






11. The level of output where output equals planned aggregate expenditure






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






13. The lowest point of the recession






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






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






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






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






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






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






20. Total supply of goods and services in an economy






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






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






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






24. A policy that affects potential output






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






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






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






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






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






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






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






32. 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.






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






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






35. 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.






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






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






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






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






40. Government policies intended to increase spending and output.






41. The labor sector highlights the rate of ____ .






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






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






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






45. The real cost of changing a listed price.






46. When inflation suddenly deviates from its normal course.






47. 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






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






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






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