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






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






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






4. When inflation suddenly deviates from its normal course.






5. When an economic unit makes more than it spends






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






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






8. 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.






9. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






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






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






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






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






16. 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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17. The slow change in inflation from year to year in industrialized nations






18. 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.






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






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






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






22. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






23. Extreme economic growth






24. Concerned with analyzing whether or not a policy should be used.






25. 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.






26. 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.






27. (n) something of value; a resource; an advantage






28. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






30. That efficiency leads to economic prosperity for all.






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






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






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






34. The international sector emphasizes the ________ rate.






35. Combines pure market and command. Example: Japan






36. The time period between a policy's implementation and its desired effects on an economy.






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






38. Organizations that act as moderators between employers and employees






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






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






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






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






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






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






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






46. The real cost of changing a listed price.






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

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48. 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.






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






50. The monetary sector focuses on the ________ rate.