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






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






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






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






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






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






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






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






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. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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


11. 1 percent more unemployment results in 2 percent less output.

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


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






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






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






15. The lowest point of the recession






16. 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.






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






18. Money multiplied by velocity equals nominal GDP.






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






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






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






22. 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.






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






24. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






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






27. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






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






31. A policy that affects potential output






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






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






34. 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.






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






36. Goods like food and clothing that have a short lifespan.






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






38. The total value of goods and services produced in a country valued at current prices.






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






40. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






41. 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


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






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






44. 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).






45. Organizations that act as moderators between employers and employees






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






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






48. The international sector emphasizes the ________ rate.






49. Combines pure market and command. Example: Japan






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