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






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






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






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






5. When inflation suddenly deviates from its normal course.






6. The increase in total benefit that comes from producing one additional unit.






7. When the rate of inflation is extremely high.






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






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






10. Government policies intended to increase spending and output.






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






12. When an economic unit makes more than it spends






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






14. Payments that the government makes to unemployed workers.






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






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






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






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






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






20. Organizations that act as moderators between employers and employees






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






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






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






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






25. 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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26. 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.






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






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






29. That efficiency leads to economic prosperity for all.






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






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






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






33. The slow change in inflation from year to year in industrialized nations






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






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






36. 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.






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






38. Money multiplied by velocity equals nominal GDP.






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






40. A quantity that is measured in real terms - the actual quantity of a good or service






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






42. The monetary sector focuses on the ________ rate.






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






44. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






45. Legal entity that has received a charter from a state or federal government.






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






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






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






49. The real cost of changing a listed price.






50. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available