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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 level of output where output equals planned aggregate expenditure






2. The increase in total cost that comes from producing one additional unit of a specific good or service.






3. The price of a good or service in relation to the price of other goods and services.






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






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






6. Combines pure market and command. Example: Japan






7. The lowest point of the recession






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






9. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






12. The output per employed worker






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






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






15. The international sector emphasizes the ________ rate.






16. Extreme economic growth






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






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






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

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






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






22. 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).






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






24. When inflation suddenly deviates from its normal course.






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






26. 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.






27. 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.






28. 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






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






30. A result of there only being one buyer of a resource input - good - or service.






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






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






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






34. Payments that the government makes to unemployed workers.






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






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






37. 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.






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






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






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






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






42. 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.






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






44. The beginning of a recession






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






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






47. The real cost of changing a listed price.






48. 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






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






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