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






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






3. The output per employed worker






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






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






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






7. 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.






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






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






10. The lowest point of the recession






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






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






13. Extreme economic growth






14. Money multiplied by velocity equals nominal GDP.






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






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






18. Combines pure market and command. Example: Japan






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






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






21. The total value of goods and services produced in a country valued at current prices.






22. The increase in total benefit that comes from producing one additional unit.






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






24. When the rate of inflation is extremely high.






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






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






27. That efficiency leads to economic prosperity for all.






28. Organizations that act as moderators between employers and employees






29. 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.






30. 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






31. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






32. The beginning of a recession






33. The rate of price increase on all things except food and energy






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






35. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






37. The real cost of changing a listed price.






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






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






40. The labor sector highlights the rate of ____ .






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






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






43. When both producers and consumers are satisfied with their quantities at market price.






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






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






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






47. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






48. 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).






49. 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.






50. The rise in taxes that occurs when before-tax income increases by one dollar