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






2. 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.






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






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






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






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






7. When the rate of inflation is extremely high.






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






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






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






11. 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.






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






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






14. Government policies intended to increase spending and output.






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






16. Describes how the economy directly effects the actions policymakers take.






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






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






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






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






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






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






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






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






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






26. 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.






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






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






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






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






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






32. 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.






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






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






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






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






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






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






39. A policy that affects potential output






40. 1 percent more unemployment results in 2 percent less output.

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






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






43. Caused by changes in the overall economy.






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






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






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






47. The total planned spending on final goods and services.






48. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






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






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