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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 monetary sector focuses on the ________ rate.






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






3. 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.






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






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






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






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






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






9. Organizations that act as moderators between employers and employees






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






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






12. 1 percent more unemployment results in 2 percent less output.

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






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






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






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






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






18. When an economic unit makes more than it spends






19. Caused by changes in the overall economy.






20. Extreme economic growth






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






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






23. 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.






24. Maximum price that a customer is willing to pay for a good






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






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






27. 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.






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






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






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






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






32. Government policies intended to increase spending and output.






33. 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






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






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






36. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






37. 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.






38. Patents - Goodwill - and Trademarks (lack physical substance)






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






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






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






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






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






44. When the rate of inflation is extremely high.






45. Money multiplied by velocity equals nominal GDP.






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






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






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






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






50. A record of economic increases and decreases over time.