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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. Unicorporated entity that has shared ownership.






2. 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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3. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






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

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






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






7. 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.






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






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






10. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






11. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






12. Caused by changes in the overall economy.






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






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






15. The lowest point of the recession






16. 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.






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






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






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






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






21. The output per employed worker






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






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






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






25. 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.






26. 1 percent more unemployment results in 2 percent less output.

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






28. 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






29. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






31. 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.






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






33. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






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






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






36. Payments that the government makes to unemployed workers.






37. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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






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






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






46. When the rate of inflation is extremely high.






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






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






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






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