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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 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.






2. Total supply of goods and services in an economy






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






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






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






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






7. 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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8. Describes how the economy directly effects the actions policymakers take.






9. The output per employed worker






10. Extreme economic growth






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






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






13. The monetary sector focuses on the ________ rate.






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






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






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






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






18. When the rate of inflation is extremely high.






19. Caused by changes in the overall economy.






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






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






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






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






24. Real Estate - Equipment - and Cash (physical assets)






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






26. 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.






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






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






29. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






30. The labor sector highlights the rate of ____ .






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






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






33. The real cost of changing a listed price.






34. Money multiplied by velocity equals nominal GDP.






35. 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.






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






37. Combines pure market and command. Example: Japan






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






39. The beginning of a recession






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






41. 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.






42. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






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






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