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






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






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






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






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






6. 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.






7. When the rate of inflation is extremely high.






8. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






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






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






11. Combines pure market and command. Example: Japan






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






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






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






15. Unicorporated entity that has shared ownership.






16. 1 percent more unemployment results in 2 percent less output.

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






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






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






20. 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.






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






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






23. Caused by changes in the overall economy.






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






25. A policy that affects potential output






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






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






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






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






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






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






32. 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.






33. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






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






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






37. 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.






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






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






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






41. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






42. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






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






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






45. 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






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






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






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






49. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






50. Government policies intended to increase spending and output.