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






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






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






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






6. 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






7. The lowest point of the recession






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






9. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






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






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






12. When the rate of inflation is extremely high.






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






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






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






16. 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.






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






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






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






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






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






22. Combines pure market and command. Example: Japan






23. Unicorporated entity that has shared ownership.






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






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






26. 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.






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






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






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






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






31. The international sector emphasizes the ________ rate.






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






33. 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).






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






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






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






37. When an economic unit makes more than it spends






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






39. 1 percent more unemployment results in 2 percent less output.

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40. Extreme economic growth






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






42. Government policies intended to increase spending and output.






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






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






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






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






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






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






49. Payments that the government makes to unemployed workers.






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