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






2. 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.






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






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






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






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






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






8. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






9. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






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






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






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






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






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






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






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






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






18. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






19. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






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






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






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






23. The output per employed worker






24. 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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25. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






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






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






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






29. When inflation suddenly deviates from its normal course.






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






32. Combines pure market and command. Example: Japan






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






34. When the rate of inflation is extremely high.






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






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






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






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






39. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






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

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41. That efficiency leads to economic prosperity for all.






42. 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.






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






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






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






46. Government policies intended to increase spending and output.






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






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






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






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