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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. 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.






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






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






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






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






6. Government policies intended to increase spending and output.






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






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






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






10. A policy that affects potential output






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






12. 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.






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






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






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






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






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






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






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






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






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






22. 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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23. The slow change in inflation from year to year in industrialized nations






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






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






26. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






27. 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.






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






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






30. 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.






31. The labor sector highlights the rate of ____ .






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






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






34. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






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






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






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






38. Real Estate - Equipment - and Cash (physical assets)






39. The lowest point of the recession






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






41. Caused by changes in the overall economy.






42. Extreme economic growth






43. 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.






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






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






46. Most free-market banking systems are based on __________ reserves.






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






48. 1 percent more unemployment results in 2 percent less output.

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






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