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






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. Combines pure market and command. Example: Japan






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






5. The labor sector highlights the rate of ____ .






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






7. The goods and services sector focuses largely on the level of ______ .






8. That efficiency leads to economic prosperity for all.






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






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






11. The monetary sector focuses on the ________ rate.






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






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






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






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






16. 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.






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






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






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






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






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






22. 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.






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






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






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






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






27. 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.






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






29. Caused by changes in the overall economy.






30. There is an ___________ ___ when aggregate output is above potential output






31. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






32. The beginning of a recession






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






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






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






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






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






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






39. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.






40. 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.






41. 1 percent more unemployment results in 2 percent less output.

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


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






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






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






45. Goods not counted in the nation's GDP.






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






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






48. Unicorporated entity that has shared ownership.






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






50. The international sector emphasizes the ________ rate.