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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 annual percentage rate of change in price level reflected by price indexes






2. 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






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






4. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






5. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






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






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






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






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






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






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






12. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






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






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






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






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






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






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






20. Money multiplied by velocity equals nominal GDP.






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






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






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






24. 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.






25. The time period between a policy's implementation and its desired effects on an economy.






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






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






28. Organizations that act as moderators between employers and employees






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






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

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






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






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






34. 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.






35. Represents the governmental tax rate that will best maximize tax revenues.






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






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






38. 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.






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






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






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






43. When inflation suddenly deviates from its normal course.






44. When an economic unit makes more than it spends






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






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






47. The real cost of changing a listed price.






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






49. The beginning of a recession






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