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






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






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






4. Caused by changes in the overall economy.






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






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






7. 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






8. 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).






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






10. Total supply of goods and services in an economy






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






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






13. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






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






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






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






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






18. When an economic unit makes more than it spends






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






20. Natural Rate of Unemployment - a rate that will always exist






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






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






23. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






24. Combines pure market and command. Example: Japan






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






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






27. The slow change in inflation from year to year in industrialized nations






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






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






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






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

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






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






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






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






37. The time between the need for a macroeconomic policy and its implementation






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






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






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






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






42. When the rate of inflation is extremely high.






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






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






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






46. The real cost of changing a listed price.






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






48. Payments that the government makes to unemployed workers.






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






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