Test your basic knowledge |

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 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






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






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






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






5. 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






6. Unicorporated entity that has shared ownership.






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






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






9. The basic assumption of this model is that in the short run - firms meet demand at present price.






10. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






12. The international sector emphasizes the ________ rate.






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






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






15. Total supply of goods and services in an economy






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






17. Organizations that act as moderators between employers and employees






18. 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.






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






20. 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.






21. 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






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






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






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






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






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






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






28. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






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






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






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






32. 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.






33. 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.






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






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






39. Government policies intended to increase spending and output.






40. Combines pure market and command. Example: Japan






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






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






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






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






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






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






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






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






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






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