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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. That efficiency leads to economic prosperity for all.






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






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






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






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






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






7. The beginning of a recession






8. Money multiplied by velocity equals nominal GDP.






9. Government policies aimed at stabilizing the economy by eliminating output gaps






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






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






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






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






14. 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).






15. Unicorporated entity that has shared ownership.






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






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






18. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






19. 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






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






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






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






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






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






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






26. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






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






28. The international sector emphasizes the ________ rate.






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






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






31. The monetary sector focuses on the ________ rate.






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






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






34. Payments that the government makes to unemployed workers.






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






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






37. Extreme economic growth






38. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






39. A macroeconomic policy that directly affects the structure and various institutions of an economy






40. The output per employed worker






41. Caused by changes in the overall economy.






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






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






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






45. 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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46. Goods not counted in the nation's GDP.






47. 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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48. A policy that affects potential output






49. 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.






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