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






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






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






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






5. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






7. 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.






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






9. Organizations that act as moderators between employers and employees






10. The real cost of changing a listed price.






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






12. 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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13. The beginning of a recession






14. 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






15. 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.






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






17. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






18. 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.






19. Unicorporated entity that has shared ownership.






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






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






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






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






24. Government policies intended to increase spending and output.






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






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






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






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






29. Combines pure market and command. Example: Japan






30. When an economic unit makes more than it spends






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






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






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






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






36. When inflation suddenly deviates from its normal course.






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






38. The international sector emphasizes the ________ rate.






39. 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






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






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






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






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






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






45. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






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






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






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






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