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






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






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






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






5. 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.






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






7. When an economic unit makes more than it spends






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






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. Combines pure market and command. Example: Japan






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






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






13. Goods like food and clothing that have a short lifespan.






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






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






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






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






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






19. A policy that affects potential output






20. Total supply of goods and services in an economy






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






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






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






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






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

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






28. 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.






29. The output per employed worker






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






31. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






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






33. 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.






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






35. Total tax paid divided by total (taxable) income - as a percentage.






36. 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.






37. 1 percent more unemployment results in 2 percent less output.

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






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






40. Government policies intended to increase spending and output.






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






42. When the rate of inflation is extremely high.






43. When both producers and consumers are satisfied with their quantities at market price.






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






45. The monetary sector focuses on the ________ rate.






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






47. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






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