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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. When the rate of inflation is extremely high.






2. 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.






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






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






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






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






7. The real cost of changing a listed price.






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






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

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






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






12. 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.






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






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






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






16. 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.






17. 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.






18. 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).






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






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






21. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






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






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






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






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






27. Goods that are used in the production of final goods.






28. The beginning of a recession






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






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






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






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






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






34. Government policies intended to increase spending and output.






35. Organizations that act as moderators between employers and employees






36. Unicorporated entity that has shared ownership.






37. The output per employed worker






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






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






40. Payments that the government makes to unemployed workers.






41. Caused by changes in the overall economy.






42. The international sector emphasizes the ________ rate.






43. 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.






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






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






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






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






48. The monetary sector focuses on the ________ rate.






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






50. 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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