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. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






8. Caused by changes in the overall economy.






9. A policy that affects potential output






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






11. 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






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






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






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






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






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






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






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






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






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






21. Extreme economic growth






22. 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).






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






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

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


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






26. The output per employed worker






27. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






28. 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.






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






30. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






31. The labor sector highlights the rate of ____ .






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






33. 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






34. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






35. 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.






36. 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.






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






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






39. That efficiency leads to economic prosperity for all.






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






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






42. (n) something of value; a resource; an advantage






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






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






45. When inflation suddenly deviates from its normal course.






46. When the rate of inflation is extremely high.






47. Total supply of goods and services in an economy






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






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






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