Test your basic knowledge |

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






2. The total value of goods and services produced in a country valued at current prices.






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






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






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






9. The speed that money changes hands in order to buy and sell final goods and services.






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






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






12. 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






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






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






15. Government policies intended to increase spending and output.






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






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






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






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






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






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






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






23. 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).






24. The lowest point of the recession






25. When the rate of inflation is extremely high.






26. Money multiplied by velocity equals nominal GDP.






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






28. 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.






29. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






30. A policy that affects potential output






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






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






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






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






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






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






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






38. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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






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






41. Unicorporated entity that has shared ownership.






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






43. Caused by changes in the overall economy.






44. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






45. Payments that the government makes to unemployed workers.






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






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






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






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






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