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






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






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






4. 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.






5. Extreme economic growth






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






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






8. 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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9. There is an ___________ ___ when aggregate output is above potential output






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






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






12. A Scottish man (1723-1790) who is known as the father of modern economics.






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






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






15. When the rate of inflation is extremely high.






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






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






18. Government policies intended to increase spending and output.






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






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






21. Caused by changes in the overall economy.






22. 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.






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






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






25. Money multiplied by velocity equals nominal GDP.






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






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






28. The law that states that as the price of any good or service increases - the quantity of that good or service will increase and vice versa.






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






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






31. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






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






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






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






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






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






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






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






39. 1 percent more unemployment results in 2 percent less output.

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






41. When inflation suddenly deviates from its normal course.






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






43. 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.






44. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






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






47. The real cost of changing a listed price.






48. The output per employed worker






49. Total supply of goods and services in an economy






50. Combines pure market and command. Example: Japan