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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 not counted in the nation's GDP.






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






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






4. Organizations that act as moderators between employers and employees






5. The lowest point of the recession






6. The speed that money changes hands in order to buy and sell final goods and services.






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






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






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






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






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






12. The real cost of changing a listed price.






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






14. 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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15. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






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






17. That efficiency leads to economic prosperity for all.






18. The rate of price increase on all things except food and energy






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






20. An increase in spending due to a perceived increase in wealth.






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






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






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






24. 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.






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






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






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






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 monetary sector focuses on the ________ rate.






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






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






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






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






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






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






37. Extreme economic growth






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






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






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






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

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






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






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






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






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






47. The output per employed worker






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






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






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