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






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






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






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






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






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






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






8. 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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9. The level of output where output equals planned aggregate expenditure






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






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






12. The output per employed worker






13. 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






14. 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.






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






16. 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.






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. 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






19. The adding up of individual economic variables to obtain a large - general picture of the economy.






20. Total tax paid divided by total (taxable) income - as a percentage.






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






22. The lowest point of the recession






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






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






25. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






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






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






34. 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.






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

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






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






38. Money multiplied by velocity equals nominal GDP.






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






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






41. 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.






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






43. Combines pure market and command. Example: Japan






44. The international sector emphasizes the ________ rate.






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






46. A policy that affects potential output






47. Natural Rate of Unemployment - a rate that will always exist






48. Unicorporated entity that has shared ownership.






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






50. Organizations that act as moderators between employers and employees