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






2. Combines pure market and command. Example: Japan






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






4. When an economic unit makes more than it spends






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






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






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






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






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






10. 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.






11. Extreme economic growth






12. Organizations that act as moderators between employers and employees






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






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






15. 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.






16. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






17. The goods and services sector focuses largely on the level of ______ .






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






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






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






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






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






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






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






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






27. 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.






28. The real cost of changing a listed price.






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






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






31. 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.






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






33. 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.






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






35. The international sector emphasizes the ________ rate.






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






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






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






39. That efficiency leads to economic prosperity for all.






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






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






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






43. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






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






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






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






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






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






49. The total planned spending on final goods and services.






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