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






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






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






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






5. Total supply of goods and services in an economy






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






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






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






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






10. 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.






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






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






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






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






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






16. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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


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






18. The beginning of a recession






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






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






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






22. 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






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






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






25. Unicorporated entity that has shared ownership.






26. 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.






27. The continuing increase in the average level of prices of goods and services over time.






28. A result of there only being one buyer of a resource input - good - or service.






29. When the rate of inflation is extremely high.






30. 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.






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. Caused by changes in the overall economy.






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






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






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






36. Government policies intended to increase spending and output.






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






38. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost

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


39. 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.






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






41. Money multiplied by velocity equals nominal GDP.






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






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






44. 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.






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






46. 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.






47. The lowest point of the recession






48. 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.






49. Natural Rate of Unemployment - a rate that will always exist






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