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






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






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






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






5. 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.






6. 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.






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






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






9. 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).






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






11. 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.






12. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






14. 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






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






16. 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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17. Goods not counted in the nation's GDP.






18. The ease with which an asset can be converted to currency.






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






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






21. The output per employed worker






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






23. 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.






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






25. The labor sector highlights the rate of ____ .






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






27. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






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






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






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






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






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






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






40. When inflation suddenly deviates from its normal course.






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






42. The beginning of a recession






43. The monetary sector focuses on the ________ rate.






44. 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






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






46. When prices fall consistently over time - leading to negative inflation.






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






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






49. 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.






50. That efficiency leads to economic prosperity for all.