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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 slow change in inflation from year to year in industrialized nations






2. Real Estate - Equipment - and Cash (physical assets)






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






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






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






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






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






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






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






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






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






12. 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).






13. 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.






14. Caused by changes in the overall economy.






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






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






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






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






20. Money multiplied by velocity equals nominal GDP.






21. That efficiency leads to economic prosperity for all.






22. A macroeconomic policy that directly affects the structure and various institutions of an economy






23. Organizations that act as moderators between employers and employees






24. The lowest point of the recession






25. 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






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






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






28. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






31. Total supply of goods and services in an economy






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






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






34. A policy that affects potential output






35. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






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






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






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






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






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






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






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






43. The degree to which people have access to goods and services that make their lives better.






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






45. 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.






46. The monetary sector focuses on the ________ rate.






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






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






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






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