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






2. Payments that the government makes to unemployed workers.






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






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






5. The monetary sector focuses on the ________ rate.






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






8. 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.






9. The beginning of a recession






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






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






12. 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






13. Goods that are used in the production of final goods.






14. Organizations that act as moderators between employers and employees






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






16. The labor sector highlights the rate of ____ .






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






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






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






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






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






22. 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.






23. A policy that affects potential output






24. 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.






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






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






27. An increase in spending due to a perceived increase in wealth.






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






29. 1 percent more unemployment results in 2 percent less output.

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






31. When the people believe that the nation's central bank will keep inflation rates low.






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






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






34. 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).






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






36. 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.






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






38. 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.






39. When inflation suddenly deviates from its normal course.






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






41. Caused by changes in the overall economy.






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






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






44. Money multiplied by velocity equals nominal GDP.






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






46. Government policies intended to increase spending and output.






47. Extreme economic growth






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






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






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

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