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






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






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






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






5. 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).






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






7. Government policies intended to increase spending and output.






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






9. 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






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






11. The monetary sector focuses on the ________ rate.






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






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






14. When people's expectations of future inflation do not change even though inflation rates change.






15. Combines pure market and command. Example: Japan






16. The adding up of individual economic variables to obtain a large - general picture of the economy.






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






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






19. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






20. 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.






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






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






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






24. 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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25. A record of economic increases and decreases over time.






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






27. Total supply of goods and services in an economy






28. 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.






29. Government policies aimed at stabilizing the economy by eliminating output gaps






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






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






32. When inflation suddenly deviates from its normal course.






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






34. 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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35. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






42. 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.






43. Caused by changes in the overall economy.






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






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






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






47. The international sector emphasizes the ________ rate.






48. 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.






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






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