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 monetary sector focuses on the ________ rate.






2. Combines pure market and command. Example: Japan






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






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






5. 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.






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






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






8. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






9. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






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






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






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






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. When an economic unit makes more than it spends






15. Total supply of goods and services in an economy






16. 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.






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






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






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






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






21. 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.






22. 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).






23. The labor sector highlights the rate of ____ .






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






25. 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.






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






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






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






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






30. When the rate of inflation is extremely high.






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






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






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






34. The annual percentage rate of change in price level reflected by price indexes






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






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






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






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






39. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






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






41. 1 percent more unemployment results in 2 percent less output.

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


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






43. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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


44. A policy that affects potential output






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






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






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






48. The output per employed worker






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






50. Government policies intended to increase spending and output.