Test your basic knowledge |

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. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






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






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






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






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






7. 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.






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






9. Payments that the government makes to unemployed workers.






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






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






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






13. A policy that affects potential output






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






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






16. 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.






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






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






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






20. Caused by changes in the overall economy.






21. The beginning of a recession






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






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






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






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






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






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






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






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






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






31. 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






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






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






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






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






36. 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






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






38. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






40. 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).






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






42. Organizations that act as moderators between employers and employees






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






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






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






46. Unicorporated entity that has shared ownership.






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






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






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






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