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






2. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






3. 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.






4. 1 percent more unemployment results in 2 percent less output.

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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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

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21. That efficiency leads to economic prosperity for all.






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






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






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






25. 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.






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






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






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






29. When an economic unit makes more than it spends






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






31. 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).






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






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






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






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






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






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






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






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






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






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






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






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






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






46. Extreme economic growth






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






48. 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






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






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