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






2. 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






3. The monetary sector focuses on the ________ rate.






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






5. When the rate of inflation is extremely high.






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






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






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






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






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






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






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

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






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






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






17. The percentage of working-age people within the labor force






18. A policy that affects potential output






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






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






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






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






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






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






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






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






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






29. Maximum price that a customer is willing to pay for a good






30. 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.






31. When inflation suddenly deviates from its normal course.






32. Caused by changes in the overall economy.






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






34. Payments that the government makes to unemployed workers.






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






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






37. The international sector emphasizes the ________ rate.






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






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






40. 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






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






42. 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.






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






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






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






46. 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.






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






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






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






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