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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. Caused by changes in the overall economy.






2. The portion of planned aggregate expenditure that is not based on output






3. When the rate of inflation is extremely high.






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






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






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






8. The output per employed worker






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






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






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






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






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






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






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






16. The real cost of changing a listed price.






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






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






19. 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.






20. The labor sector highlights the rate of ____ .






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






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






23. 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






24. Combines pure market and command. Example: Japan






25. 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






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






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






28. Extreme economic growth






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






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






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. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






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






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






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






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






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






39. 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.






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






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






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






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






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






45. A large - unexpected change in the cost of resources.






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






47. 1 percent more unemployment results in 2 percent less output.

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






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