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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 relationship between disposable income and spending on consumable goods and services






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






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






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






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






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






7. When an economic unit makes more than it spends






8. 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.






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






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






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






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






13. A policy that affects potential output






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






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






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






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






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






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






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






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






22. The lowest point of the recession






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






24. Combines pure market and command. Example: Japan






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






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






27. 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






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






29. The monetary sector focuses on the ________ rate.






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






31. The international sector emphasizes the ________ rate.






32. 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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33. Goods that are used in the production of final goods.






34. The real cost of changing a listed price.






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






36. 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.






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






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






39. 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.






40. The labor sector highlights the rate of ____ .






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






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






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






44. 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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45. 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.






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






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






48. 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.






49. (n) something of value; a resource; an advantage






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