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






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






3. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






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






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






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






13. 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.






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






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






16. A policy that affects potential output






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






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






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






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






21. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






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






23. Payments that the government makes to unemployed workers.






24. 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






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






26. 1 percent more unemployment results in 2 percent less output.

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






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






29. A free market system that relies on private property ownership and supply and demand






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






31. The labor sector highlights the rate of ____ .






32. 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.






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






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






35. When an economic unit makes more than it spends






36. 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






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






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






39. 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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40. Real Estate - Equipment - and Cash (physical assets)






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






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






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






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






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






47. 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.






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






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






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