Test your basic knowledge |

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 large - unexpected change in the cost of resources.






2. An increase in this would cause an increase in the aggregate supply






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






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






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






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






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. The portion of planned aggregate expenditure that is not based on output






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






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






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






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






13. 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.






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






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






16. When inflation suddenly deviates from its normal course.






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






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






19. 1 percent more unemployment results in 2 percent less output.

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






22. 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.






23. The labor sector highlights the rate of ____ .






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






25. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






26. The beginning of a recession






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






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






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






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






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






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






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






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






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






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






37. That efficiency leads to economic prosperity for all.






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






39. Unicorporated entity that has shared ownership.






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






41. Goods like food and clothing that have a short lifespan.






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






43. Caused by changes in the overall economy.






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






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






46. Money multiplied by velocity equals nominal GDP.






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






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






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






50. When an economic unit makes more than it spends