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






2. The output per employed worker






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






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






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






6. A policy that affects potential output






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






8. 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.






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

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10. When an economic unit makes more than it spends






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






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






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






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






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






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






17. Money multiplied by velocity equals nominal GDP.






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






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






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






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






22. The international sector emphasizes the ________ rate.






23. 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.






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






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






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






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






28. Organizations that act as moderators between employers and employees






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






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






31. Combines pure market and command. Example: Japan






32. An increase in spending due to a perceived increase in wealth.






33. 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.






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






35. 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.






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






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






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






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






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






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






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






43. The labor sector highlights the rate of ____ .






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






45. Unicorporated entity that has shared ownership.






46. Total tax paid divided by total (taxable) income - as a percentage.






47. Payments that the government makes to unemployed workers.






48. The increase in total cost that comes from producing one additional unit of a specific good or service.






49. That efficiency leads to economic prosperity for all.






50. 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.