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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. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






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






4. Unicorporated entity that has shared ownership.






5. Payments that the government makes to unemployed workers.






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






7. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






8. That efficiency leads to economic prosperity for all.






9. 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.






10. An increase in this would cause an increase in the aggregate supply






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






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






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






14. 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.






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






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






17. 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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18. Extreme economic growth






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






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






21. 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






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






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






24. 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).






25. When inflation suddenly deviates from its normal course.






26. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






29. The beginning of a recession






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






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






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






33. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply






34. Government policies intended to increase spending and output.






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






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






37. The speed that money changes hands in order to buy and sell final goods and services.






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






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






40. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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






47. The real cost of changing a listed price.






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






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






50. Combines pure market and command. Example: Japan