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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. Organizations that act as moderators between employers and employees






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






3. The international sector emphasizes the ________ rate.






4. 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






5. Government policies intended to increase spending and output.






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






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






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






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






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






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






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






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

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






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






16. The real cost of changing a listed price.






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






18. Extreme economic growth






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






20. Caused by changes in the overall economy.






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






22. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






23. 1 percent more unemployment results in 2 percent less output.

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






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






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






27. 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.






28. A policy that affects potential output






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






30. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






31. Unicorporated entity that has shared ownership.






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






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






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






36. Total supply of goods and services in an economy






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






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






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






40. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






42. The beginning of a recession






43. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply






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






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






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






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






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






49. The labor sector highlights the rate of ____ .






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