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






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






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






4. The degree to which people have access to goods and services that make their lives better.






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

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






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






8. 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.






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






10. 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.






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






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






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






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






15. 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






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






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






18. Represents the governmental tax rate that will best maximize tax revenues.






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






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






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






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






23. The price of a good or service in relation to the price of other goods and services.






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






25. Extreme economic growth






26. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






33. 1 percent more unemployment results in 2 percent less output.

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






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






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






37. Combines pure market and command. Example: Japan






38. Most free-market banking systems are based on __________ reserves.






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






40. A policy that affects potential output






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






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






43. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






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






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






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






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






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