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






2. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






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






4. Total supply of goods and services in an economy






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






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






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






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






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






10. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






11. Caused by changes in the overall economy.






12. 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.






13. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






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






15. Organizations that act as moderators between employers and employees






16. The international sector emphasizes the ________ rate.






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






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






19. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






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






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






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






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






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






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






26. Extreme economic growth






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






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






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






30. 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.






31. The beginning of a recession






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






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






34. Unicorporated entity that has shared ownership.






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






36. 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.






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






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






39. 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).






40. That efficiency leads to economic prosperity for all.






41. 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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42. Government policies intended to increase spending and output.






43. 1 percent more unemployment results in 2 percent less output.

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






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






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






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






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






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






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