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






2. The monetary sector focuses on the ________ rate.






3. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






4. 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.






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






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






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






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






9. Organizations that act as moderators between employers and employees






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






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






12. Government policies intended to increase spending and output.






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. Payments that the government makes to unemployed workers.






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






16. The output per employed worker






17. 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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18. Total supply of goods and services in an economy






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






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






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






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






23. 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.






24. An increase in spending due to a perceived increase in wealth.






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






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






27. 1 percent more unemployment results in 2 percent less output.

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28. The lowest point of the recession






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






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






31. When an economic unit makes more than it spends






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






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






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






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






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






37. 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.






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






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






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






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






42. The beginning of a recession






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






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






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






46. 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.






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






48. Unicorporated entity that has shared ownership.






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






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