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 real cost of changing a listed price.






2. 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


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






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






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






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






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






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






9. Money multiplied by velocity equals nominal GDP.






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






11. Caused by changes in the overall economy.






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






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






14. When an economic unit makes more than it spends






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






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






17. 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






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 smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost

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


20. 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






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






22. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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


23. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






24. Payments that the government makes to unemployed workers.






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






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






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






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






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






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






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






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






33. 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






34. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






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






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






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






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






39. The labor sector highlights the rate of ____ .






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






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






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






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






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






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






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






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






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






49. 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.






50. The monetary sector focuses on the ________ rate.