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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 monetary sector focuses on the ________ rate.






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






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






4. 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.






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






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






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






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






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






10. When inflation suddenly deviates from its normal course.






11. 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






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






13. Organizations that act as moderators between employers and employees






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






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






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






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






18. 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.






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






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






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






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






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






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






25. Total supply of goods and services in an economy






26. The international sector emphasizes the ________ rate.






27. 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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28. The relationship between disposable income and spending on consumable goods and services






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






30. 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.






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






32. 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






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

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






35. Government policies intended to increase spending and output.






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






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






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






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






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






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






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






43. When an economic unit makes more than it spends






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






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






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






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






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






49. Combines pure market and command. Example: Japan






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