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






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






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






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






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






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






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






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






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






10. 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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11. When the rate of inflation is extremely high.






12. The part of economics study that looks at the operation of a nation's economy as a whole






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






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






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






16. A policy that affects potential output






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






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






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






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






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






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






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






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






25. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






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






27. Money multiplied by velocity equals nominal GDP.






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






29. Unicorporated entity that has shared ownership.






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






31. The beginning of a recession






32. A measure of overall price levels at a specific point in the price index.






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






34. 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






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






36. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






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






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






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






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






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






42. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






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






44. Extreme economic growth






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






46. That efficiency leads to economic prosperity for all.






47. The labor sector highlights the rate of ____ .






48. Combines pure market and command. Example: Japan






49. When inflation suddenly deviates from its normal course.






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