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






2. Total supply of goods and services in an economy






3. 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






4. The labor sector highlights the rate of ____ .






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






6. Represents the governmental tax rate that will best maximize tax revenues.






7. 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.






8. 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.






9. 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.






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






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






12. 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.






13. The output per employed worker






14. 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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15. 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.






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






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






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






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






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






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






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






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






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






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






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

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






28. The real cost of changing a listed price.






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






30. 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.






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






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






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






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






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






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






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






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






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






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






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






42. Payments that the government makes to unemployed workers.






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






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






45. That efficiency leads to economic prosperity for all.






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






47. The monetary sector focuses on the ________ rate.






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






49. The lowest point of the recession






50. When an economic unit makes more than it spends