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






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






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






4. 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.






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






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






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






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






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






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






11. When inflation suddenly deviates from its normal course.






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






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






14. 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






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






16. Money multiplied by velocity equals nominal GDP.






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






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






19. The real cost of changing a listed price.






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






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






22. 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






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






24. 1 percent more unemployment results in 2 percent less output.

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






26. Government policies aimed at stabilizing the economy by eliminating output gaps






27. The international sector emphasizes the ________ rate.






28. A record of economic increases and decreases over time.






29. A policy that affects potential output






30. Total supply of goods and services in an economy






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






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






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






34. 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






35. When an economic unit makes more than it spends






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






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






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






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






40. 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.






41. The monetary sector focuses on the ________ rate.






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






43. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






44. Organizations that act as moderators between employers and employees






45. 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.






46. 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.






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






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






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






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