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






2. A large - unexpected change in the cost of resources.






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






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






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






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

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7. Combines pure market and command. Example: Japan






8. Total supply of goods and services in an economy






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






10. The lowest point of the recession






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






12. When inflation suddenly deviates from its normal course.






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






14. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






15. 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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16. The amount of workers that are willing to work for a real wage.






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






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






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






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






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






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






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






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






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






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






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






28. 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






29. Organizations that act as moderators between employers and employees






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






31. 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.






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






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






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






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






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






37. When an economic unit makes more than it spends






38. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






39. 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






40. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






41. The monetary sector focuses on the ________ rate.






42. 1 percent more unemployment results in 2 percent less output.

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43. The real cost of changing a listed price.






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






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






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






47. 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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48. Goods that are used in the production of final goods.






49. The international sector emphasizes the ________ rate.






50. The output per employed worker