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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 law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






2. Organizations that act as moderators between employers and employees






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






4. Unicorporated entity that has shared ownership.






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. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






8. Money multiplied by velocity equals nominal GDP.






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






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






11. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






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






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

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






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






16. 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.






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






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






19. The real cost of changing a listed price.






20. A policy that affects potential output






21. 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.






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






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






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






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






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






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






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






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






30. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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






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






38. 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.






39. 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






40. The output per employed worker






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






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






43. 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.






44. Government policies intended to increase spending and output.






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






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






47. The time period between a policy's implementation and its desired effects on an economy.






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






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






50. 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.