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






2. Unicorporated entity that has shared ownership.






3. Extreme economic growth






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






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

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6. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






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






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






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






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






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






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






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






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






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






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






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






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






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






20. The international sector emphasizes the ________ rate.






21. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






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






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






25. A measure of overall price levels at a specific point in the price index.






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






27. Government policies intended to increase spending and output.






28. That efficiency leads to economic prosperity for all.






29. Money multiplied by velocity equals nominal GDP.






30. The total value of goods and services produced in a country valued at current prices.






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






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






33. 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.






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






35. Combines pure market and command. Example: Japan






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






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






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






39. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






40. 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






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






42. 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.






43. The beginning of a recession






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






45. 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.






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






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






48. When the rate of inflation is extremely high.






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






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