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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 ease with which an asset can be converted to currency.






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

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






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






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






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






8. The real cost of changing a listed price.






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






10. 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.






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






12. 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.






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






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






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






16. Unicorporated entity that has shared ownership.






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






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






19. When prices fall consistently over time - leading to negative inflation.






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






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






22. 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






23. 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.






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






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

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






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






28. 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.






29. Total tax paid divided by total (taxable) income - as a percentage.






30. The lowest point of the recession






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






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






33. The beginning of a recession






34. 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).






35. The output per employed worker






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






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






38. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






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






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






41. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






43. 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.






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






45. Caused by changes in the overall economy.






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






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






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






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 percentage of working-age people within the labor force