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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Traditional economic system
Labor productivity
Excess Supply
Inflationary gap
2. Used to demonstrate shifts in income distribution among a population over time.
Policy reaction function
Seller's reservation price
Output gap
Lorenz curve
3. Represents the governmental tax rate that will best maximize tax revenues.
Velocity
Law of Supply
Boom
Laffer curve
4. The annual percentage rate of change in price level reflected by price indexes
The rate of inflation
Corporation
Inflation
Free market
5. The government office that is responsible for projecting federal surpluses and deficits
Congressional budget office
Real quantity
Capital goods
Frictional unemployment
6. The maximum amount that an economy can output over a period of time
Worker mobility
Potential output
Fisher effect
Adam Smith
7. Total tax paid divided by total (taxable) income - as a percentage.
Inside lag
Average tax rate
AD curve intersects the SAS curve
Stabilization policies
8. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Planned aggregate expenditure (PAE)
Law of Diminishing Marginal Utility
Aggregate demand
Gross National Product (GNP)
9. Organizations that act as moderators between employers and employees
Labor unions
Velocity
Aggregate supply shock
Normative analysis
10. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Pay
Deflation
Peak
11. The movement of workers between jobs - companies - and industries
Normative analysis
Law of Demand
Corporation
Worker mobility
12. 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.
Recession
Capitalism
Aggregate supply
Traditional economic system
13. Most free-market banking systems are based on __________ reserves.
Fractional
Quantity equation
Standard of living
Asset
14. The goods and services sector focuses largely on the level of ______ .
Reservation price
Income
Adam Smith
Peak
15. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Total surplus
Socially optimal quantity
Policy reaction function
Aggregate Supply
16. The increase in total cost that comes from producing one additional unit of a specific good or service.
Intangible Assets
Phillips curve
Marginal cost
Normative analysis
17. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Congressional budget office
Phillips curve
Income
18. When prices fall consistently over time - leading to negative inflation.
Autonomous Expenditure
Businesses
Core rate of inflation
Deflation
19. The total planned spending on final goods and services.
Aggregate supply shock
Planned aggregate expenditure (PAE)
NRU
Intangible Assets
20. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Macroeconomics
Marginal cost
Congressional budget office
21. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Average tax rate
Reservation price
Output gap
Cyclical unemployment
22. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Economic efficiency
Command economic system
Expansionary policies
Businesses
23. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Fractional
The principle of efficiency
Phillips curve
24. 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).
Recession
Boom
Labor supply
Frictional unemployment
25. When inflation suddenly deviates from its normal course.
Inflation shock
LRAS
Intermediate goods
Deflation
26. Unicorporated entity that has shared ownership.
Buyer's surplus
Law of Demand
Outside lag
Partnership
27. The adding up of individual economic variables to obtain a large - general picture of the economy.
LRAS
Price level
Corporation
Aggregation
28. That efficiency leads to economic prosperity for all.
The principle of efficiency
Core rate of inflation
Traditional economic system
Buyer's surplus
29. The labor sector highlights the rate of ____ .
Liquidity
Quantity equation
Phillips curve
Pay
30. 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
Real employment
Labor supply
Standard of living
31. When the people believe that the nation's central bank will keep inflation rates low.
Worker mobility
Average tax rate
Credibility of monetary policy
Fisher effect
32. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Inflation shock
Invisible hand
Monetarism
33. A large - unexpected change in the cost of resources.
Quantity equation
Aggregate supply shock
Core rate of inflation
Four sectors of the economy
34. A macroeconomic policy that directly affects the structure and various institutions of an economy
Equilibrium price
Policy reaction function
Marginal cost
Structural policy
35. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Hyperinflation
Nominal GDP
Price
Substitution effect
36. Total supply of goods and services in an economy
Unemployment insurance
Aggregate supply
The quality adjustment bias
Consumption
37. The degree to which people have access to goods and services that make their lives better.
Standard of living
Business cycle
Aggregate Supply
Credibility of monetary policy
38. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Traditional economic system
Indexing
Inflation
39. The output per employed worker
Consumption function
Mixed market
Sole proprietorship
Labor productivity
40. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Inflation inertia
Average tax rate
Command economic system
41. 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
Gross National Product (GNP)
Phillips curve
Autonomous Expenditure
42. An increase in spending due to a perceived increase in wealth.
Inside lag
Sunk cost
The Wealth Effect
Monopsony
43. Caused by changes in the overall economy.
Marginal cost
Income
Asset
Cyclical unemployment
44. When the rate of inflation is extremely high.
Disinflation
Buyer's surplus
Planned aggregate expenditure (PAE)
Hyperinflation
45. A measure of overall price levels at a specific point in the price index.
Gross Domestic Product (GDP)
Normative analysis
Macroeconomics
Price level
46. Maximum price that a customer is willing to pay for a good
Substitution bias
Phillips curve
Reservation price
Aggregate supply
47. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Policy reaction function
Price
Excess Supply
Keynesian economic theory
48. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Worker mobility
Excess Supply
Law of Supply
Phillips curve
49. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Automatic stabilizers
The quality adjustment bias
Command economic system
50. Payments that the government makes to unemployed workers.
Real employment
Unemployment insurance
The rate of inflation
Potential output