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






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






3. Unicorporated entity that has shared ownership.






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






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






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






7. 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.






8. 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.






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






10. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






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






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






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






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






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






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






20. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






21. 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.






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






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






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






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






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






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






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






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






30. The output per employed worker






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






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






33. 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.






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






35. The real cost of changing a listed price.






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






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






38. 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






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






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






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






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






43. A free market system that relies on private property ownership and supply and demand






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






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






46. Extreme economic growth






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






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






49. 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






50. When inflation suddenly deviates from its normal course.