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






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






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






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






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






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






7. Payments that the government makes to unemployed workers.






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






9. 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.






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






11. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






12. 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.






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






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






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






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






17. The labor sector highlights the rate of ____ .






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






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






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

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






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






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






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






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






26. The international sector emphasizes the ________ rate.






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






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






29. 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.






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






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






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






33. The output per employed worker






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






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






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






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






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






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






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






41. 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.






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






43. The monetary sector focuses on the ________ rate.






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






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






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






47. Extreme economic growth






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






49. The real cost of changing a listed price.






50. When inflation suddenly deviates from its normal course.