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






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






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






4. When inflation suddenly deviates from its normal course.






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






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






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






8. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






9. The labor sector highlights the rate of ____ .






10. Unicorporated entity that has shared ownership.






11. 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






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






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






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






15. The international sector emphasizes the ________ rate.






16. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






17. Money multiplied by velocity equals nominal GDP.






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






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






20. Organizations that act as moderators between employers and employees






21. 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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22. The percentage of working-age people within the labor force






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






24. 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.






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






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






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






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






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






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






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






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






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






35. That efficiency leads to economic prosperity for all.






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

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






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






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






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






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






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






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






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






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






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






47. When the rate of inflation is extremely high.






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






49. Extreme economic growth






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