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






2. When the rate of inflation is extremely high.






3. That efficiency leads to economic prosperity for all.






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






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






6. Represents the governmental tax rate that will best maximize tax revenues.






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






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






9. 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.






10. Caused by changes in the overall economy.






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






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






13. 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.






14. 1 percent more unemployment results in 2 percent less output.

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






16. 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.






17. 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.






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






19. 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.






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






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






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






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






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






25. Payments that the government makes to unemployed workers.






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






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






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






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






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






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






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






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






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

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






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






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






39. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost

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40. The price of a good or service in relation to the price of other goods and services.






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






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






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






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






45. 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.






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






47. A policy that affects potential output






48. The labor sector highlights the rate of ____ .






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






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