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






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






4. Organizations that act as moderators between employers and employees






5. Business entity which legally has no separate existence from its owner.






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






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






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






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






10. The beginning of a recession






11. 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.






12. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






13. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






14. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






15. 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






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






17. Extreme economic growth






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






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. The maximum amount that an economy can output over a period of 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. A large - unexpected change in the cost of resources.






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






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






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






26. 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






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






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






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






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






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






32. Government policies intended to increase spending and output.






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






34. The labor sector highlights the rate of ____ .






35. The monetary sector focuses on the ________ rate.






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






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






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






39. 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.






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






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






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






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






44. 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.






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






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






47. When the rate of inflation is extremely high.






48. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






49. Payments that the government makes to unemployed workers.






50. When both producers and consumers are satisfied with their quantities at market price.