Test your basic knowledge |

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






2. 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






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






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






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






6. The total planned spending on final goods and services.






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






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






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






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






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






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






13. The lowest point of the recession






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






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






16. Government policies intended to increase spending and output.






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






18. Payments that the government makes to unemployed workers.






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






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






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






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






23. Unicorporated entity that has shared ownership.






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






25. 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.






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






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






28. 1 percent more unemployment results in 2 percent less output.

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






30. 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.






31. When an economic unit makes more than it spends






32. A policy that affects potential output






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






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






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






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






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






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






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






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






41. 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.






42. The international sector emphasizes the ________ rate.






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






44. The beginning of a recession






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






46. 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.






47. The output per employed worker






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






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






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