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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. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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






3. 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.






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






6. Unicorporated entity that has shared ownership.






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






8. The monetary sector focuses on the ________ rate.






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






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






11. That efficiency leads to economic prosperity for all.






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






13. 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.






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






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






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






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






18. When prices fall consistently over time - leading to negative inflation.






19. When an economic unit makes more than it spends






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






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






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






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






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






25. 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).






26. Extreme economic growth






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






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






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






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






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






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






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






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






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






36. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






37. 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.






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






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






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






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






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

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






44. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






45. 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.






46. 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.






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






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






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






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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