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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. Payments that the government makes to unemployed workers.






2. When the rate of inflation is extremely high.






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






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






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






6. 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.






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






8. Combines pure market and command. Example: Japan






9. The international sector emphasizes the ________ rate.






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






11. 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






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






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






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






15. 1 percent more unemployment results in 2 percent less output.

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






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






18. 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.






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






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






21. The lowest point of the recession






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






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






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






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






26. When inflation suddenly deviates from its normal course.






27. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






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






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






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






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






33. 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






34. When both producers and consumers are satisfied with their quantities at market price.






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






36. Total supply of goods and services in an economy






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






38. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






40. 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.






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






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






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






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






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






46. 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.






47. The beginning of a recession






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






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






50. That efficiency leads to economic prosperity for all.