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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 labor sector highlights the rate of ____ .






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






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






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






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






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






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






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






10. A measure of overall price levels at a specific point in the price index.






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






12. Government policies intended to increase spending and output.






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






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






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






16. The lowest point of the recession






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






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






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






20. 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.






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






22. When an economic unit makes more than it spends






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






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






25. 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.






26. The beginning of a recession






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






28. 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.






29. Describes how the economy directly effects the actions policymakers take.






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






31. 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






32. When inflation suddenly deviates from its normal course.






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






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






35. Combines pure market and command. Example: Japan






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






37. 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.






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






39. Total supply of goods and services in an economy






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






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






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






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






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






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






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






47. 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).






48. Unicorporated entity that has shared ownership.






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






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