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Test your basic knowledge |
CLEP Macroeconomics - 3
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Study First
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. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Aggregate supply
Substitution effect
The rate of inflation
Businesses
2. A record of economic increases and decreases over time.
Adam Smith
Automatic stabilizers
Real quantity
Business cycle
3. 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
Boom
Structural policy
Substitution bias
Gross National Product (GNP)
4. The percentage of working-age people within the labor force
Participation rate
The real GDP per person
Unemployment insurance
Laffer curve
5. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Equilibrium price
Potential output
Macroeconomics
6. The difference between the price received by the seller and the seller's reservation price
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7. A quantity that is measured in real terms - the actual quantity of a good or service
The quality adjustment bias
Real quantity
Real employment
The rate of inflation
8. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Consumption
Economic efficiency
Fractional
Output gap
9. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Complement
Potential output
Unemployment insurance
Excess Supply
10. 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.
Gross Domestic Product (GDP)
Marginal benefit
Peak
NRU
11. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Intermediate Goods
Command economic system
Marginal tax rate
Consumption
12. The lowest point of the recession
Trough
Participation rate
Reservation price
Excess Supply
13. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Real quantity
Pay
Okun's Law
Structural unemployment
14. Most free-market banking systems are based on __________ reserves.
Disinflation
Fractional
Marginal benefit
Unemployment insurance
15. 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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16. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Keynesian model
Inflation inertia
Real GDP
Phillips curve
17. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Excess Supply
Unemployment insurance
Gross National Product (GNP)
Stabilization policies
18. An increase in this would cause an increase in the aggregate supply
Labor productivity
The rate of inflation
Substitution effect
Sunk cost
19. The annual percentage rate of change in price level reflected by price indexes
Inflation inertia
The rate of inflation
Fisher effect
Command economic system
20. Real Estate - Equipment - and Cash (physical assets)
Business cycle
Tangible Assets
Unemployment insurance
AD curve intersects the SAS curve
21. The rise in taxes that occurs when before-tax income increases by one dollar
Sunk cost
Marginal tax rate
Fractional
Aggregate supply
22. The government office that is responsible for projecting federal surpluses and deficits
Corporation
Congressional budget office
The quality adjustment bias
Adam Smith
23. Combines pure market and command. Example: Japan
Deflation
Intermediate Goods
Buyer's surplus
Mixed market
24. 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.
Real employment
Lorenz curve
Pay
Automatic stabilizers
25. A result of there only being one buyer of a resource input - good - or service.
Intermediate goods
Tangible Assets
Monopsony
Outside lag
26. When an economic unit makes more than it spends
AD curve intersects the SAS curve
Saving
Free market
Market equilibrium
27. 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.
Sunk cost
Automatic stabilizers
Standard of living
Seller's reservation price
28. There is an ___________ ___ when aggregate output is above potential output
Seller's surplus
Inflationary gap
Credibility of monetary policy
Market equilibrium
29. Used to demonstrate shifts in income distribution among a population over time.
Aggregate Supply
Intermediate Goods
Marginal cost
Lorenz curve
30. The increase in total benefit that comes from producing one additional unit.
Liquidity
Average tax rate
Outside lag
Marginal benefit
31. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Short run equilibrium output
Sole proprietorship
Seller's reservation price
Keynesian economic theory
32. Natural Rate of Unemployment - a rate that will always exist
Seller's surplus
Law of Supply
NRU
Credibility of monetary policy
33. The slow change in inflation from year to year in industrialized nations
Cyclical unemployment
Autonomous Expenditure
Inflation inertia
Fractional
34. Government policies intended to increase spending and output.
Expansionary policies
Outside lag
Law of Supply
Labor productivity
35. Describes how the economy directly effects the actions policymakers take.
Sole proprietorship
Phillips curve
Lorenz curve
Policy reaction function
36. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Real employment
Labor supply
Aggregate Supply
Unemployment insurance
37. Caused by changes in the overall economy.
Labor supply
Macroeconomics
Labor unions
Cyclical unemployment
38. The total value of goods and services produced in a country valued at current prices.
Labor productivity
Frictional unemployment
Nominal GDP
Law of Supply
39. (n) something of value; a resource; an advantage
Asset
Anchored inflation expectations
Real employment
Seller's surplus
40. When the people believe that the nation's central bank will keep inflation rates low.
Inflation shock
Market equilibrium
Contractionary policies
Credibility of monetary policy
41. Maximum price that a customer is willing to pay for a good
Reservation price
Fractional
Aggregate Supply
Normative analysis
42. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Equilibrium price
Menu cost
Substitution effect
43. 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.
Law of Supply
Credibility of monetary policy
Corporation
Real quantity
44. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Aggregate supply
Nominal GDP
Market equilibrium
45. The part of economics study that looks at the operation of a nation's economy as a whole
Frictional unemployment
Macroeconomics
Tangible Assets
Expansionary policies
46. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Rationing
Real employment
Economic efficiency
Excess Supply
47. When inflation suddenly deviates from its normal course.
Liquidity
Inflation
Inflation shock
Marginal tax rate
48. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Contractionary policies
Potential output
Anchored inflation expectations
LRAS
49. The adding up of individual economic variables to obtain a large - general picture of the economy.
Outside lag
Aggregate demand
Aggregation
The Wealth Effect
50. The international sector emphasizes the ________ rate.
Trough
Exchange
Indexing
LRAS