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






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






3. 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






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






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






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






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






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






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






10. That efficiency leads to economic prosperity for all.






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






12. Government policies intended to increase spending and output.






13. 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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14. A policy that affects potential output






15. 1 percent more unemployment results in 2 percent less output.

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






17. Organizations that act as moderators between employers and employees






18. The lowest point of the recession






19. Goods and services sector - Labor sector - monetary sector - international sector.






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






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






22. When an economic unit makes more than it spends






23. Total supply of goods and services in an economy






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






25. The real cost of changing a listed price.






26. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






27. A record of economic increases and decreases over time.






28. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






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






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






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






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






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






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






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






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






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






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






40. The international sector emphasizes the ________ rate.






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






42. The degree to which people have access to goods and services that make their lives better.






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






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






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






46. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






47. 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






48. The labor sector highlights the rate of ____ .






49. Patents - Goodwill - and Trademarks (lack physical substance)






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