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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 beginning of a recession






2. The real cost of changing a listed price.






3. 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.






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






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






6. Goods that are used in the production of final goods.






7. 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.






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






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






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






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






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






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






14. 1 percent more unemployment results in 2 percent less output.

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






16. The output per employed worker






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






18. The international sector emphasizes the ________ rate.






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






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






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






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






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






24. When the people believe that the nation's central bank will keep inflation rates low.






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






26. 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.






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






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






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






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






31. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






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






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






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






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






37. The time between the need for a macroeconomic policy and its implementation






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






39. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






47. The labor sector highlights the rate of ____ .






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






49. 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).






50. 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.