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






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






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






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






5. Government policies intended to increase spending and output.






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






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






8. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






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






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






11. Business entity which legally has no separate existence from its owner.






12. 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.






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






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






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






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






17. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






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






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






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






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






22. 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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23. 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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24. When inflation suddenly deviates from its normal course.






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






26. Goods not counted in the nation's GDP.






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






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






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






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

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31. The labor sector highlights the rate of ____ .






32. Unicorporated entity that has shared ownership.






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






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






35. 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.






36. The beginning of a recession






37. 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.






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






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






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






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






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






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






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






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






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






47. When the rate of inflation is extremely high.






48. When an economic unit makes more than it spends






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






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