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






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






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






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






6. Patents - Goodwill - and Trademarks (lack physical substance)






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






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






9. Most free-market banking systems are based on __________ reserves.






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






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






12. When inflation suddenly deviates from its normal course.






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






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






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






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






17. Payments that the government makes to unemployed workers.






18. 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.






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






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






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






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






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






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






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






26. Caused by changes in the overall economy.






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






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






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






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






31. 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.






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






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






34. 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.






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






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






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






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






39. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






40. Government policies intended to increase spending and output.






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






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






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






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






46. 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.






47. The international sector emphasizes the ________ rate.






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






49. 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






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