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






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






3. 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.






4. Organizations that act as moderators between employers and employees






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






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






7. The labor sector highlights the rate of ____ .






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






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






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






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






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






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






14. The monetary sector focuses on the ________ rate.






15. 1 percent more unemployment results in 2 percent less output.

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






17. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






18. When inflation suddenly deviates from its normal course.






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






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






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






22. Real Estate - Equipment - and Cash (physical assets)






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






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






25. Payments that the government makes to unemployed workers.






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






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






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






29. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






31. The real cost of changing a listed price.






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






33. Patents - Goodwill - and Trademarks (lack physical substance)






34. That efficiency leads to economic prosperity for all.






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






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






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






38. 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






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






40. The international sector emphasizes the ________ rate.






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






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






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






44. 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.






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






47. 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.






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






49. 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






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