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






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






3. The beginning of a recession






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






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






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






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






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






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






10. 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.






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






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






13. 1 percent more unemployment results in 2 percent less output.

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






15. Total supply of goods and services in an economy






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






17. 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






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






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






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






21. The lowest point of the recession






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






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






24. 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.






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






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






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






28. Caused by changes in the overall economy.






29. The monetary sector focuses on the ________ rate.






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






31. 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.






32. The real cost of changing a listed price.






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






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






35. Extreme economic growth






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






37. 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).






38. The speed that money changes hands in order to buy and sell final goods and services.






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






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






41. 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.






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






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






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






45. 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.






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






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






48. 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.






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






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