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






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






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






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






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

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6. The labor sector highlights the rate of ____ .






7. The maximum amount that an economy can output over a period of time






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






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






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






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






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






13. The percentage of working-age people within the labor force






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






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






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






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






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






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






20. 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.






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






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






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






24. The beginning of a recession






25. 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.






26. 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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27. Caused by changes in the overall economy.






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






29. 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.






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






31. When inflation suddenly deviates from its normal course.






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






33. A policy that affects potential output






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






35. Extreme economic growth






36. That efficiency leads to economic prosperity for all.






37. When the rate of inflation is extremely high.






38. Organizations that act as moderators between employers and employees






39. Business entity which legally has no separate existence from its owner.






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






41. The output per employed worker






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






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






44. Government policies intended to increase spending and output.






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






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






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






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






49. 1 percent more unemployment results in 2 percent less output.

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50. 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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