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






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






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






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






5. When an economic unit makes more than it spends






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






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






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






9. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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






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






18. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






20. Combines pure market and command. Example: Japan






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






22. A large - unexpected change in the cost of resources.






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






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






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






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






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






28. The total planned spending on final goods and services.






29. Money multiplied by velocity equals nominal GDP.






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






31. The beginning of a recession






32. Government policies intended to increase spending and output.






33. 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






34. When the rate of inflation is extremely high.






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






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






37. 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.






38. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






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






40. 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.






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






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






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






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






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

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






47. 1 percent more unemployment results in 2 percent less output.

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48. 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.






49. The real cost of changing a listed price.






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