Test your basic knowledge |

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 price received by the seller and the seller's reservation price

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






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






5. 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).






6. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






7. When the rate of inflation is extremely high.






8. 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






9. When inflation suddenly deviates from its normal course.






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






11. The real cost of changing a listed price.






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






15. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






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






17. Money multiplied by velocity equals nominal GDP.






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






19. Total supply of goods and services in an economy






20. 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






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






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






23. 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.






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






26. 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.






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






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






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






30. Payments that the government makes to unemployed workers.






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






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






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






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






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






36. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






37. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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






39. The maximum amount that an economy can output over a period of time






40. 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.






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






42. Describes how the economy directly effects the actions policymakers take.






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






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






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






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






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






48. 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.






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






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