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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 rate of price increase on all things except food and energy






2. Extreme economic growth






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






4. When an economic unit makes more than it spends






5. 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






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






7. Goods like food and clothing that have a short lifespan.






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






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






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






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






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






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






14. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






16. The real cost of changing a listed price.






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






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






19. The labor sector highlights the rate of ____ .






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






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






22. The amount of workers that are willing to work for a real wage.






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






24. That efficiency leads to economic prosperity for all.






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






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






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






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






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

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






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






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






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






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






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






36. When the people believe that the nation's central bank will keep inflation rates low.






37. 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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38. An increase in this would cause an increase in the aggregate supply






39. 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






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






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






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






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






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






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






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






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






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






49. Combines pure market and command. Example: Japan






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