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






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






3. 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






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






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






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

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






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






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






10. 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.






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






12. The lowest point of the recession






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






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






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






17. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






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






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






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






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






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






23. Combines pure market and command. Example: Japan






24. 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.






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






26. When an economic unit makes more than it spends






27. 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.






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






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






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






31. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






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






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






34. Government policies intended to increase spending and output.






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






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






37. Caused by changes in the overall economy.






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






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






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






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






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






43. 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.






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






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






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






47. When inflation suddenly deviates from its normal course.






48. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






50. The international sector emphasizes the ________ rate.