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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. Total supply of goods and services in an economy






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






3. A quantity that is measured in real terms - the actual quantity of a good or service






4. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






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

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8. 1 percent more unemployment results in 2 percent less output.

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9. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






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






12. A policy that affects potential output






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






14. Caused by changes in the overall economy.






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






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






17. 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.






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






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






20. When inflation suddenly deviates from its normal course.






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






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






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






24. A macroeconomic policy that directly affects the structure and various institutions of an economy






25. 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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26. Money multiplied by velocity equals nominal GDP.






27. Extreme economic growth






28. When an economic unit makes more than it spends






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






30. 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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31. The annual percentage rate of change in price level reflected by price indexes






32. The monetary sector focuses on the ________ rate.






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






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






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






36. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






37. Organizations that act as moderators between employers and employees






38. The amount of workers that are willing to work for a real wage.






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






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






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






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






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






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






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






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






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






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






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






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