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






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






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






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






5. When inflation suddenly deviates from its normal course.






6. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






13. 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.






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






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






16. The international sector emphasizes the ________ rate.






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






18. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






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






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






23. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






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






25. Money multiplied by velocity equals nominal GDP.






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






27. Payments that the government makes to unemployed workers.






28. Represents the governmental tax rate that will best maximize tax revenues.






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






30. The real cost of changing a listed price.






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






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






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






34. 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.






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






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






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

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38. The output per employed worker






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






40. The labor sector highlights the rate of ____ .






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






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






43. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost

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






45. 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.






46. When an economic unit makes more than it spends






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






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






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






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