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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. 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






2. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






3. The real cost of changing a listed price.






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






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






6. Total supply of goods and services in an economy






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






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






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






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






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






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






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






14. Caused by changes in the overall economy.






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






16. The labor sector highlights the rate of ____ .






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






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






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






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






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






23. The beginning of a recession






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






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






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

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27. Extreme economic growth






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






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






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






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






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






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






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






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






36. The total value of goods and services produced in a country valued at current prices.






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






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






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






40. 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.






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






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






43. 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






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






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






46. A policy that affects potential output






47. 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.






48. Unicorporated entity that has shared ownership.






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






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