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






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






3. The monetary sector focuses on the ________ rate.






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






5. When inflation suddenly deviates from its normal course.






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






7. 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.






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






10. The relationship between disposable income and spending on consumable goods and services






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






29. Business entity which legally has no separate existence from its owner.






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






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






32. 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.






33. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






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






36. 1 percent more unemployment results in 2 percent less output.

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






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






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






40. 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






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






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






43. 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






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






45. 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.






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






47. The real cost of changing a listed price.






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






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






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