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






2. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






3. Describes how the economy directly effects the actions policymakers take.






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






5. 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).






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






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






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






9. Caused by changes in the overall economy.






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






11. 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.






12. When an economic unit makes more than it spends






13. That efficiency leads to economic prosperity for all.






14. 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.






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






16. A policy that affects potential output






17. When the rate of inflation is extremely high.






18. When inflation suddenly deviates from its normal course.






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






20. 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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21. The labor sector highlights the rate of ____ .






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






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






24. The real cost of changing a listed price.






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






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






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






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






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






30. The monetary sector focuses on the ________ rate.






31. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






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






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






34. 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






35. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






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






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






39. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






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






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






42. 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






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






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






45. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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