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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 total planned spending on final goods and services.






2. The output per employed worker






3. 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.






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






5. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






7. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






8. Caused by changes in the overall economy.






9. Unicorporated entity that has shared ownership.






10. 1 percent more unemployment results in 2 percent less output.

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11. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






12. 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.






13. Organizations that act as moderators between employers and employees






14. 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).






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






33. The beginning of a recession






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






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






36. The labor sector highlights the rate of ____ .






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






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






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






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






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






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






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






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






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






46. 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.






47. 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.






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






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






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







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