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






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






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






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






6. The labor sector highlights the rate of ____ .






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






8. The lowest point of the recession






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






10. 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.






11. The international sector emphasizes the ________ rate.






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






13. Government policies intended to increase spending and output.






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






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






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






17. The law that states that as the price of any good or service increases - the quantity of that good or service will increase and vice versa.






18. 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.






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






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






21. 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).






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






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






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






25. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






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






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






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






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






30. Total supply of goods and services in an economy






31. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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






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






39. 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.






40. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






41. Goods that are used in the production of final goods.






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






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






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






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






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






47. Money multiplied by velocity equals nominal GDP.






48. 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.






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






50. 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.