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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 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






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






3. Describes how the economy directly effects the actions policymakers take.






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






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






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






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






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






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






10. Combines pure market and command. Example: Japan






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






12. The level of output where output equals planned aggregate expenditure






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






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






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






16. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






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






19. Payments that the government makes to unemployed workers.






20. 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.






21. 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.






22. Total supply of goods and services in an economy






23. 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






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






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






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






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






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






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






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






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






32. Total tax paid divided by total (taxable) income - as a percentage.






33. 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.






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






35. Organizations that act as moderators between employers and employees






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






37. 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.






38. The real cost of changing a listed price.






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






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






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






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






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






44. The monetary sector focuses on the ________ rate.






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






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






48. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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






50. The difference between the price received by the seller and the seller's reservation price

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