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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 movement of workers between jobs - companies - and industries






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






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






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






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






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






7. Real Estate - Equipment - and Cash (physical assets)






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






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






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






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






12. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






13. An increase in spending due to a perceived increase in wealth.






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






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

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17. 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.






18. Total supply of goods and services in an economy






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






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






21. The monetary sector focuses on the ________ rate.






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






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






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






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






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






27. 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.






28. 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






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






30. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






31. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






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






33. 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.






34. Money multiplied by velocity equals nominal GDP.






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






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






37. 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.






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






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






40. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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






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






43. 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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44. The beginning of a recession






45. The real cost of changing a listed price.






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






47. 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






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






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






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

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