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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 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.






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






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






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






5. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






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






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






14. 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






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






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

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






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






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






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






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






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






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






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






25. 1 percent more unemployment results in 2 percent less output.

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






27. Total supply of goods and services in an economy






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






29. The real cost of changing a listed price.






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






31. 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.






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






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






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






35. The monetary sector focuses on the ________ rate.






36. Extreme economic growth






37. The output per employed worker






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






39. When inflation suddenly deviates from its normal course.






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






41. The lowest point of the recession






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






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






44. That efficiency leads to economic prosperity for all.






45. A policy that affects potential output






46. 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






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






48. The beginning of a recession






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






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