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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 like food and clothing that have a short lifespan.






2. The international sector emphasizes the ________ rate.






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






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






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






6. 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.






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






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






9. The output per employed worker






10. 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.






11. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






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






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






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






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






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






18. A policy that affects potential output






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






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






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






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






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






24. Government policies intended to increase spending and output.






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






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






27. Unicorporated entity that has shared ownership.






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






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






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






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






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






33. Used to demonstrate shifts in income distribution among a population over time.






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

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35. 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.






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






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






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






39. 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






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






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






42. Organizations that act as moderators between employers and employees






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






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






45. Extreme economic growth






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






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






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






49. The labor sector highlights the rate of ____ .






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