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






2. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






3. 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






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






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






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






7. The real cost of changing a listed price.






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






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






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






11. 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.






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






13. 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.






14. 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.






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






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






17. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






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






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

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20. 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






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






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






23. Unicorporated entity that has shared ownership.






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






25. Caused by changes in the overall economy.






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






27. The beginning of a recession






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






29. Legal entity that has received a charter from a state or federal government.






30. Total supply of goods and services in an economy






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






32. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






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






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






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






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






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






38. 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).






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






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






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






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






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






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






45. The increase in total benefit that comes from producing one additional unit.






46. When inflation suddenly deviates from its normal course.






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






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






49. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






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