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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 annual percentage rate of change in price level reflected by price indexes






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






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






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






5. Total supply of goods and services in an economy






6. A policy that affects potential output






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






8. 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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9. Organizations that act as moderators between employers and employees






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






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






12. 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.






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






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






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






18. 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.






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






20. That efficiency leads to economic prosperity for all.






21. A free market system that relies on private property ownership and supply and demand






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






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

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






25. 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






26. The beginning of a recession






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






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






29. Extreme economic growth






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






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






32. Money multiplied by velocity equals nominal GDP.






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






34. 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






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






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






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






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






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






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






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






42. The output per employed worker






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






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






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






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






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






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






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






50. The monetary sector focuses on the ________ rate.