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






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






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






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






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






6. Total supply of goods and services in an economy






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






8. The continuing increase in the average level of prices of goods and services over time.






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






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






11. 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.






12. The monetary sector focuses on the ________ rate.






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






14. The output per employed worker






15. 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.






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






17. Unicorporated entity that has shared ownership.






18. The lowest point of the recession






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






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

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21. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






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






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






24. A policy that affects potential output






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






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






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






28. Caused by changes in the overall economy.






29. Extreme economic growth






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






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






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






33. The real cost of changing a listed price.






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






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






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






37. The beginning of a recession






38. 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.






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






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






41. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






42. The international sector emphasizes the ________ rate.






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






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






45. 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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46. When prices fall consistently over time - leading to negative inflation.






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






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






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






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