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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 rate of price increase on all things except food and energy






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






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






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






5. 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.






6. The beginning of a recession






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






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






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






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






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






12. The real cost of changing a listed price.






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






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






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. 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






17. 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






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






19. When the rate of inflation is extremely high.






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






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






22. 1 percent more unemployment results in 2 percent less output.

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






24. Most free-market banking systems are based on __________ reserves.






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






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






27. 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






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






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






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






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






32. Combines pure market and command. Example: Japan






33. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






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






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






36. 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.






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






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






39. A policy that affects potential output






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






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






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

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






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






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






46. Payments that the government makes to unemployed workers.






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






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






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






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