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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 rate of price increase on all things except food and energy






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






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






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






5. 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.






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






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






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






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






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






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






12. 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.






13. 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






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






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






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






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






18. 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






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






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






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






22. The real cost of changing a listed price.






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






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






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






26. The output per employed worker






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






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






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






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






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






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






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






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






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






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






37. 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.






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






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






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






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






42. 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.






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






44. The labor sector highlights the rate of ____ .






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






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






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






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






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