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






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






3. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






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






6. The real cost of changing a listed price.






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






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






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






10. 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.






11. That efficiency leads to economic prosperity for all.






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






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






14. Represents the governmental tax rate that will best maximize tax revenues.






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






16. Government policies intended to increase spending and output.






17. The degree to which people have access to goods and services that make their lives better.






18. 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).






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






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






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






22. Combines pure market and command. Example: Japan






23. The portion of planned aggregate expenditure that is not based on output






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






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






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






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






28. 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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29. 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.






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






31. Extreme economic growth






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






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






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






35. A policy that affects potential output






36. Total supply of goods and services in an economy






37. The government office that is responsible for projecting federal surpluses and deficits






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






39. The output per employed worker






40. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






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






42. Money multiplied by velocity equals nominal GDP.






43. The time between the need for a macroeconomic policy and its implementation






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






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






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






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






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






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






50. The international sector emphasizes the ________ rate.