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






2. Unicorporated entity that has shared ownership.






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






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






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






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






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






8. 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.






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






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






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

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






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






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






15. The output per employed worker






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






17. 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.






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






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






20. 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.






21. The maximum amount that an economy can output over a period of time






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






23. 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






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






25. 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.






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






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






28. 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.






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






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






31. The real cost of changing a listed price.






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






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






34. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






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






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






37. Payments that the government makes to unemployed workers.






38. Combines pure market and command. Example: Japan






39. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






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






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






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






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






44. When the rate of inflation is extremely high.






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






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






47. Money multiplied by velocity equals nominal GDP.






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






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






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