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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. Combines pure market and command. Example: Japan






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






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






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






5. The beginning of a recession






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






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






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






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






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






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






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






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






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






16. 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).






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






18. 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






19. 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.






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






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






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






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






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






25. When the rate of inflation is extremely high.






26. The lowest point of the recession






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






28. The labor sector highlights the rate of ____ .






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






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






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






32. 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.






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






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






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






36. 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.






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






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






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






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






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






42. Organizations that act as moderators between employers and employees






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






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






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






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






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






48. When prices fall consistently over time - leading to negative inflation.






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






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