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






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






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






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






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






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






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






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






9. Extreme economic growth






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






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






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






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






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






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






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






17. 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






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






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






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






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






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






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






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






25. Payments that the government makes to unemployed workers.






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






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






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






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






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






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






32. 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.






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






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






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






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






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






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






39. The output per employed worker






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






41. When the rate of inflation is extremely high.






42. Money multiplied by velocity equals nominal GDP.






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






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






45. 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






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






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

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48. When an economic unit makes more than it spends






49. Combines pure market and command. Example: Japan






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