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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 inflation suddenly deviates from its normal course.






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






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






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






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






6. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






7. The international sector emphasizes the ________ rate.






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






9. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






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






11. 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.






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






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






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






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






16. Combines pure market and command. Example: Japan






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






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






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






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






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






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






23. When the rate of inflation is extremely high.






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






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






26. The real cost of changing a listed price.






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






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






29. Payments that the government makes to unemployed workers.






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






31. Goods not counted in the nation's GDP.






32. Total supply of goods and services in an economy






33. 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.






34. 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.






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






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






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






39. 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






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






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






42. When people's expectations of future inflation do not change even though inflation rates change.






43. 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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44. Patents - Goodwill - and Trademarks (lack physical substance)






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






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






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






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






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






50. Unicorporated entity that has shared ownership.