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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. 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.






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






4. The labor sector highlights the rate of ____ .






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






6. The relationship between disposable income and spending on consumable goods and services






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






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






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






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






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






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






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






14. Organizations that act as moderators between employers and employees






15. The real cost of changing a listed price.






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






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






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






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






20. 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.






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






22. 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.






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






24. The lowest point of the recession






25. Government policies intended to increase spending and output.






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






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






28. When the rate of inflation is extremely high.






29. Unicorporated entity that has shared ownership.






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






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






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






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






34. Payments that the government makes to unemployed workers.






35. 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.






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






37. The beginning of a recession






38. 1 percent more unemployment results in 2 percent less output.

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






41. The international sector emphasizes the ________ rate.






42. When people's expectations of future inflation do not change even though inflation rates change.






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






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






45. 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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46. 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.






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






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






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






50. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.