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






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






3. 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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4. 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.






5. When the rate of inflation is extremely high.






6. The rate of price increase on all things except food and energy






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






8. 1 percent more unemployment results in 2 percent less output.

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9. That efficiency leads to economic prosperity for all.






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






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






12. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






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






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






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






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






17. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






18. Payments that the government makes to unemployed workers.






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






20. 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.






21. 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.






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






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






24. Extreme economic growth






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






26. The portion of planned aggregate expenditure that is not based on output






27. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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






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






35. Combines pure market and command. Example: Japan






36. 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






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






38. Total supply of goods and services in an economy






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






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






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






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






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

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






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






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






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






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






49. When inflation suddenly deviates from its normal course.






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