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






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






3. 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






4. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






7. Extreme economic growth






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






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






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






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






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






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






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






16. A policy that affects potential output






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






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






19. The international sector emphasizes the ________ rate.






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






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






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






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






24. 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.






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






26. 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.






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






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

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






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






31. 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.






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






33. 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.






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






35. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






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






37. The real cost of changing a listed price.






38. When inflation suddenly deviates from its normal course.






39. A macroeconomic policy that directly affects the structure and various institutions of an economy






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






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






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






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






44. The movement of workers between jobs - companies - and industries






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






46. Unicorporated entity that has shared ownership.






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






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






49. Payments that the government makes to unemployed workers.






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