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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 total value of goods and services produced in a country valued at current prices.






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






3. Extreme economic growth






4. 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.






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






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






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






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






9. The output per employed worker






10. Maximum price that a customer is willing to pay for a good






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






12. 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.






13. 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).






14. A policy that affects potential output






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






16. That efficiency leads to economic prosperity for all.






17. Payments that the government makes to unemployed workers.






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






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






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






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






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






23. 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






24. The beginning of a recession






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






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






27. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






28. When inflation suddenly deviates from its normal course.






29. When the rate of inflation is extremely high.






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

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






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






33. 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.






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






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






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






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






38. 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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39. The monetary sector focuses on the ________ rate.






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






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






42. 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.






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






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






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






46. The rise in taxes that occurs when before-tax income increases by one dollar






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






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






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






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