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Test your basic knowledge |
CLEP Macroeconomics - 3
Start Test
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. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Deflation
Substitution bias
Boom
2. Payments that the government makes to unemployed workers.
decreases increases
Worker mobility
Market equilibrium
Unemployment insurance
3. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Exchange
Substitution effect
Structural unemployment
Fisher effect
4. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Aggregation
Consumption function
Intermediate goods
The quality adjustment bias
5. The monetary sector focuses on the ________ rate.
Buyer's surplus
Exchange
Laffer curve
Interest
6. 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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7. The price of a good or service in relation to the price of other goods and services.
Labor productivity
Credibility of monetary policy
Rationing
Relative price
8. 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.
Inflation inertia
Law of Diminishing Marginal Utility
Autonomous Expenditure
Businesses
9. The beginning of a recession
Congressional budget office
Mixed market
Peak
Interest
10. The relationship between disposable income and spending on consumable goods and services
Inflationary gap
Corporation
Consumption function
Keynesian model
11. The increase in total benefit that comes from producing one additional unit.
Intangible Assets
Marginal benefit
Cyclical unemployment
Disinflation
12. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply
Contractionary policies
Consumption function
Monetarism
Labor supply
13. Goods that are used in the production of final goods.
Intermediate goods
Labor unions
The real GDP per person
Hyperinflation
14. Organizations that act as moderators between employers and employees
Labor unions
Menu cost
Inside lag
Recession
15. There is an ___________ ___ when aggregate output is above potential output
Equilibrium price
Inflationary gap
The principle of efficiency
Inflation inertia
16. The labor sector highlights the rate of ____ .
Mixed market
Pay
Automatic stabilizers
Socially optimal quantity
17. The ease with which an asset can be converted to currency.
Intermediate Goods
Normative analysis
Relative price
Liquidity
18. The amount of workers that are willing to work for a real wage.
Outside lag
Core rate of inflation
Substitution bias
Labor supply
19. The degree to which people have access to goods and services that make their lives better.
Planned aggregate expenditure (PAE)
Aggregation
Standard of living
Core rate of inflation
20. A free market system that relies on private property ownership and supply and demand
Monetarism
Capitalism
Cyclical unemployment
NRU
21. The part of economics study that looks at the operation of a nation's economy as a whole
Monopsony
Marginal tax rate
LRAS
Macroeconomics
22. 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.
Consumption
Traditional economic system
Trough
Inflation inertia
23. A policy that affects potential output
Total surplus
Inflation inertia
Intermediate goods
Supply-side policy
24. 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
The principle of efficiency
Intermediate Goods
Consumption function
25. A Scottish man (1723-1790) who is known as the father of modern economics.
Real employment
The principle of efficiency
Nominal GDP
Adam Smith
26. The adding up of individual economic variables to obtain a large - general picture of the economy.
Substitution effect
Aggregation
Policy reaction function
Monopsony
27. An increase in spending due to a perceived increase in wealth.
Outside lag
Marginal benefit
The Wealth Effect
Income
28. The rate of price increase on all things except food and energy
Price level
The principle of efficiency
Core rate of inflation
Standard of living
29. 1 percent more unemployment results in 2 percent less output.
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30. A macroeconomic policy that directly affects the structure and various institutions of an economy
Recession
Structural policy
Law of Demand
Market equilibrium
31. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Consumption function
Indexing
Mixed market
32. Real Estate - Equipment - and Cash (physical assets)
Planned aggregate expenditure (PAE)
Mixed market
Velocity
Tangible Assets
33. A measure of overall price levels at a specific point in the price index.
Monetarism
Price level
Marginal benefit
Velocity
34. 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).
Real employment
Frictional unemployment
Congressional budget office
Capital goods
35. The annual percentage rate of change in price level reflected by price indexes
Saving
The rate of inflation
Real GDP
The Wealth Effect
36. 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.
Reservation price
Contractionary policies
Deflation
Structural policy
37. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Worker mobility
Sunk cost
Law of Supply
Gross National Product (GNP)
38. 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.
Interest
Automatic stabilizers
Labor productivity
Capital goods
39. When inflation suddenly deviates from its normal course.
Interest
Nominal GDP
Mixed market
Inflation shock
40. The basic assumption of this model is that in the short run - firms meet demand at present price.
Sole proprietorship
Fractional
Keynesian model
Intermediate Goods
41. Caused by changes in the overall economy.
Seller's surplus
Laffer curve
Cyclical unemployment
Capitalism
42. (n) something of value; a resource; an advantage
Asset
Saving
Monopsony
Law of Demand
43. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Free market
Gross National Product (GNP)
Labor productivity
44. Money multiplied by velocity equals nominal GDP.
Quantity equation
Real quantity
Hyperinflation
Gross National Product (GNP)
45. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Market equilibrium
Velocity
Structural unemployment
46. Government policies intended to increase spending and output.
Contractionary policies
Macroeconomics
Short run equilibrium output
Expansionary policies
47. Extreme economic growth
Average tax rate
Boom
Quantity equation
Aggregate supply shock
48. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Rationing
Law of Demand
Labor supply
Total surplus
49. Maximum price that a customer is willing to pay for a good
Supply-side policy
Mixed market
Real GDP
Reservation price
50. The difference between the price received by the seller and the seller's reservation price
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