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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. When inflation suddenly deviates from its normal course.






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






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






4. Goods that are used in the production of final goods.






5. Combines pure market and command. Example: Japan






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






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






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






9. Payments that the government makes to unemployed workers.






10. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






11. Government policies intended to increase spending and output.






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






13. The beginning of a recession






14. The output per employed worker






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






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






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






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






19. Money multiplied by velocity equals nominal GDP.






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






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






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






23. 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.






24. The labor sector highlights the rate of ____ .






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






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






27. A policy that affects potential output






28. 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.






29. 1 percent more unemployment results in 2 percent less output.

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30. 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.






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






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






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






35. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






36. 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






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






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






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






40. 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.






41. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






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






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






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






45. That efficiency leads to economic prosperity for all.






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






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






48. The real cost of changing a listed price.






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






50. Maximum price that a customer is willing to pay for a good