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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. That efficiency leads to economic prosperity for all.






2. Unicorporated entity that has shared ownership.






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

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






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






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






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






8. 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






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






10. When inflation suddenly deviates from its normal course.






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






12. The rate of price increase on all things except food and energy






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






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






15. The lowest point of the recession






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






17. When the rate of inflation is extremely high.






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






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






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






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






22. 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.






23. 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.






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






25. The portion of planned aggregate expenditure that is not based on output






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






27. The part of economics study that looks at the operation of a nation's economy as a whole






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






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






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






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






32. The real cost of changing a listed price.






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






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






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






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






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






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






39. The monetary sector focuses on the ________ rate.






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






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






42. The percentage of working-age people within the labor force






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






44. Most free-market banking systems are based on __________ reserves.






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






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






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






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






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






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