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






2. Organizations that act as moderators between employers and employees






3. Government policies intended to increase spending and output.






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






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






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






7. Combines pure market and command. Example: Japan






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






9. The lowest point of the recession






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






11. Extreme economic growth






12. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






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






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






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






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






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






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






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






21. 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.






22. The real cost of changing a listed price.






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






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






25. 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.






26. Payments that the government makes to unemployed workers.






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






28. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






29. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






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






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






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






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






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






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






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






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






38. A policy that affects potential output






39. The amount of workers that are willing to work for a real wage.






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






41. 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.






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






43. 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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44. 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






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






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






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






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






49. Goods and services sector - Labor sector - monetary sector - international sector.






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