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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. 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.






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






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






4. Unicorporated entity that has shared ownership.






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






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






7. When the rate of inflation is extremely high.






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






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






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






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






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






13. Used in the production of final goods - but instead of being consumed - are available for reuse.






14. Caused by changes in the overall economy.






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






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






17. The monetary sector focuses on the ________ rate.






18. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






19. Money multiplied by velocity equals nominal GDP.






20. Payments that the government makes to unemployed workers.






21. 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






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






23. 1 percent more unemployment results in 2 percent less output.

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






25. Organizations that act as moderators between employers and employees






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






27. The output per employed worker






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






29. Extreme economic growth






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






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






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






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






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






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






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






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






38. When an economic unit makes more than it spends






39. 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.






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






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






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






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






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






46. Total supply of goods and services in an economy






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






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






49. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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

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