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






2. Goods not counted in the nation's 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. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






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






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






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






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






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






11. 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.






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






13. A policy that affects potential output






14. Unicorporated entity that has shared ownership.






15. The monetary sector focuses on the ________ rate.






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






17. 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).






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






19. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






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






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






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






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. 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. 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.






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






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






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






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






31. 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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32. 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.






33. The lowest point of the recession






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






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






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






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






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






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






40. Organizations that act as moderators between employers and employees






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






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






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






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






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






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






47. Payments that the government makes to unemployed workers.






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






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






50. 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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