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






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






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






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






5. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






6. The real cost of changing a listed price.






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






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






9. 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.






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






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






12. When the rate of inflation is extremely high.






13. Organizations that act as moderators between employers and employees






14. 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.






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






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






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






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






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






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






21. 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.






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

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


23. 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.






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






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






26. The beginning of a recession






27. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






28. A policy that affects potential output






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






30. Payments that the government makes to unemployed workers.






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






32. When inflation suddenly deviates from its normal course.






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






34. 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.






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






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






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






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






39. The international sector emphasizes the ________ rate.






40. A macroeconomic policy that directly affects the structure and various institutions of an economy






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






42. There is an ___________ ___ when aggregate output is above potential output






43. Legal entity that has received a charter from a state or federal government.






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






45. 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.






46. Government policies intended to increase spending and output.






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






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






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






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