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






2. 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.






3. The ease with which an asset can be converted to currency.






4. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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






11. Goods that are used in the production of final goods.






12. 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).






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






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






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






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






17. Natural Rate of Unemployment - a rate that will always exist






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






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






20. 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.






21. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






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






25. The international sector emphasizes the ________ rate.






26. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






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






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






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






30. Unicorporated entity that has shared ownership.






31. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






32. Money multiplied by velocity equals nominal GDP.






33. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






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






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






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






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






39. The real cost of changing a listed price.






40. The labor sector highlights the rate of ____ .






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

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42. 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






43. The lowest point of the recession






44. When an economic unit makes more than it spends






45. A large - unexpected change in the cost of resources.






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






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






48. 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






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






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