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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. 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).






2. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






3. A macroeconomic policy that directly affects the structure and various institutions of an economy






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






5. 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






6. When inflation suddenly deviates from its normal course.






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






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






9. 1 percent more unemployment results in 2 percent less output.

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






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






12. (n) something of value; a resource; an advantage






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






15. When both producers and consumers are satisfied with their quantities at market price.






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






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






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






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






20. 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.






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






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






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






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






25. Government policies intended to increase spending and output.






26. 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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27. 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.






28. Caused by changes in the overall economy.






29. Combines pure market and command. Example: Japan






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






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






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






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






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






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






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






37. That efficiency leads to economic prosperity for all.






38. 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.






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






40. The labor sector highlights the rate of ____ .






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






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






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






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






45. 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






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






47. 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.






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






49. 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.






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