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






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






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






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






5. Total supply of goods and services in an economy






6. 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.






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






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






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






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






11. The beginning of a recession






12. Combines pure market and command. Example: Japan






13. Extreme economic growth






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






15. The real cost of changing a listed price.






16. The percentage of working-age people within the labor force






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






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






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






20. Caused by changes in the overall economy.






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






22. When the rate of inflation is extremely high.






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






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






25. The monetary sector focuses on the ________ rate.






26. An increase in spending due to a perceived increase in wealth.






27. The degree to which people have access to goods and services that make their lives better.






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






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






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






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






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






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






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






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






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






37. 1 percent more unemployment results in 2 percent less output.

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






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






41. 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.






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






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






44. When an economic unit makes more than it spends






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






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






47. 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.






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






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






50. That efficiency leads to economic prosperity for all.