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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 relationship between disposable income and spending on consumable goods and services






2. When an economic unit makes more than it spends






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






4. When the rate of inflation is extremely high.






5. 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.






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






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






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






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






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






11. The labor sector highlights the rate of ____ .






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






13. Government policies intended to increase spending and output.






14. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






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






16. 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.






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






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






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






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






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






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






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






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






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






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






27. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






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






30. Total supply of goods and services in an economy






31. That efficiency leads to economic prosperity for all.






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






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






34. 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.






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






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






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






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






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






40. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






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






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






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






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






45. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






48. Money multiplied by velocity equals nominal GDP.






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

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