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






2. Caused by changes in the overall economy.






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. 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






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






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






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






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






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






10. When the rate of inflation is extremely high.






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






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






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






14. The beginning of a recession






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






17. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






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






19. Payments that the government makes to unemployed workers.






20. 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.






21. The output per employed worker






22. When an economic unit makes more than it spends






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






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






25. Organizations that act as moderators between employers and employees






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






27. 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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28. 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.






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






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






31. Government policies aimed at stabilizing the economy by eliminating output gaps






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

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






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






35. Maximum price that a customer is willing to pay for a good






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






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






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






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






40. The real cost of changing a listed price.






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






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






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






44. The labor sector highlights the rate of ____ .






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






46. The lowest point of the recession






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






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






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






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