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






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






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






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






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






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






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






8. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






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






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






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






12. The real cost of changing a listed price.






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






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






15. 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.






16. Caused by changes in the overall economy.






17. 1 percent more unemployment results in 2 percent less output.

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18. Organizations that act as moderators between employers and employees






19. 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.






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






21. Payments that the government makes to unemployed workers.






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






23. When the rate of inflation is extremely high.






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






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






26. Total supply of goods and services in an economy






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






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






29. 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






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






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






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






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






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






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






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






38. Government policies intended to increase spending and output.






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






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






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






42. 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.






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






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






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

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






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






48. The international sector emphasizes the ________ rate.






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






50. The output per employed worker