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






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






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






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






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






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






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






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






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






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






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






12. Unicorporated entity that has shared ownership.






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






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






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






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






18. Government policies intended to increase spending and output.






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






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






21. Caused by changes in the overall economy.






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






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






24. 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.






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






26. A policy that affects potential output






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






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

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29. 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.






30. Combines pure market and command. Example: Japan






31. 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.






32. 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).






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






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






36. The output per employed worker






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






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






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






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






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






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






43. 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






44. The total planned spending on final goods and services.






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






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. 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.






48. Payments that the government makes to unemployed workers.






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






50. Extreme economic growth