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






2. 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






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






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






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






7. 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.






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






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






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






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






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






13. Government policies intended to increase spending and output.






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






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






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






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






18. Money multiplied by velocity equals nominal GDP.






19. 1 percent more unemployment results in 2 percent less output.

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20. The international sector emphasizes the ________ rate.






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






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






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






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






25. The lowest point of the recession






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






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






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

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29. 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.






30. That efficiency leads to economic prosperity for all.






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






32. Extreme economic growth






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






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






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






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






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






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






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






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






41. The beginning of a recession






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






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






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






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






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






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






48. 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






49. The real cost of changing a listed price.






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