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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 prices fall consistently over time - leading to negative inflation.






2. 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.






3. Legal entity that has received a charter from a state or federal government.






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






5. 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.






6. The output per employed worker






7. 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.






8. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






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






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






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






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






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






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






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






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






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






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






19. 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.






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






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






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






23. The lowest point of the recession






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






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






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






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






28. Total supply of goods and services in an economy






29. Caused by changes in the overall economy.






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






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






32. The monetary sector focuses on the ________ rate.






33. Payments that the government makes to unemployed workers.






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






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






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






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






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






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






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






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

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42. 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






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






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






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






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






47. Unicorporated entity that has shared ownership.






48. That efficiency leads to economic prosperity for all.






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






50. When inflation suddenly deviates from its normal course.