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






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






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






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






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






6. When an economic unit makes more than it spends






7. 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






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






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






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






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






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






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






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






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

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16. Extreme economic growth






17. 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.






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






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






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






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






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






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






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






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






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






28. The beginning of a recession






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






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






31. The output per employed worker






32. 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.






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






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






35. 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.






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






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






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. Organizations that act as moderators between employers and employees






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






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






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






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






44. When inflation suddenly deviates from its normal course.






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






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






47. Money multiplied by velocity equals nominal GDP.






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






49. 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.






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