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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 percentage of working-age people within the labor force






2. Payments that the government makes to unemployed workers.






3. When an economic unit makes more than it spends






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






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






6. The real cost of changing a listed price.






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






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






10. The beginning of a recession






11. The output per employed worker






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






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






14. A record of economic increases and decreases over time.






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






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






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






18. 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.






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






20. The monetary sector focuses on the ________ rate.






21. Extreme economic growth






22. 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






23. Caused by changes in the overall economy.






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






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






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






27. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






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






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






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






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






33. 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






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






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






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






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






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






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






40. Unicorporated entity that has shared ownership.






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






42. Organizations that act as moderators between employers and employees






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






44. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






45. 1 percent more unemployment results in 2 percent less output.

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






47. 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.






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






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






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