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






2. 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.






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






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






5. 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.






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






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






8. Organizations that act as moderators between employers and employees






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






10. The real cost of changing a listed price.






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






12. When inflation suddenly deviates from its normal course.






13. 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.






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






15. Unicorporated entity that has shared ownership.






16. 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






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






18. 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.






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






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






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






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






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






24. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






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






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






28. 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.






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






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






31. Total supply of goods and services in an economy






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






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






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






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






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






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






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






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






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






41. Business entity which legally has no separate existence from its owner.






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






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






44. Money multiplied by velocity equals nominal GDP.






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






46. Payments that the government makes to unemployed workers.






47. The beginning of a recession






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






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