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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. Caused by changes in the overall economy.
LRAS
Cyclical unemployment
Congressional budget office
Seller's reservation price
2. The portion of planned aggregate expenditure that is not based on output
Economic efficiency
Business cycle
Autonomous Expenditure
Price level
3. When the rate of inflation is extremely high.
Structural policy
Mixed market
Boom
Hyperinflation
4. Real Estate - Equipment - and Cash (physical assets)
Inflation
Keynesian economic theory
Aggregate Supply
Tangible Assets
5. 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).
Frictional unemployment
Real quantity
Total surplus
Quantity equation
6. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Marginal cost
The quality adjustment bias
Mixed market
Okun's Law
7. The government office that is responsible for projecting federal surpluses and deficits
Boom
Automatic stabilizers
Consumption function
Congressional budget office
8. The output per employed worker
Disinflation
Labor productivity
Inflation
Intermediate goods
9. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Seller's surplus
Consumption function
Corporation
Aggregate demand
10. The maximum amount that an economy can output over a period of time
Marginal benefit
Price level
Keynesian economic theory
Potential output
11. Goods that are used in the production of final goods.
Socially optimal quantity
Capital income
Seller's reservation price
Intermediate goods
12. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Law of Supply
The principle of efficiency
Policy reaction function
13. A result of there only being one buyer of a resource input - good - or service.
Nominal GDP
Sole proprietorship
Outside lag
Monopsony
14. Legal entity that has received a charter from a state or federal government.
Corporation
Sole proprietorship
Trough
Real employment
15. When the people believe that the nation's central bank will keep inflation rates low.
Participation rate
Credibility of monetary policy
Market equilibrium
Real quantity
16. The real cost of changing a listed price.
Income
Menu cost
Monopsony
Expansionary policies
17. The continuing increase in the average level of prices of goods and services over time.
Inflation
Peak
Law of Diminishing Marginal Utility
Supply-side policy
18. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Price
Business cycle
Keynesian economic theory
19. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.
Reservation price
Law of Demand
Partnership
Output gap
20. The labor sector highlights the rate of ____ .
Labor productivity
Aggregate supply shock
The real GDP per person
Pay
21. The time period between a policy's implementation and its desired effects on an economy.
Unemployment insurance
Outside lag
Law of Diminishing Marginal Utility
Peak
22. Patents - Goodwill - and Trademarks (lack physical substance)
Buyer's surplus
Intangible Assets
Real quantity
Businesses
23. 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
Gross Domestic Product (GDP)
Core rate of inflation
Substitution bias
LRAS
24. Combines pure market and command. Example: Japan
Price
LRAS
Adam Smith
Mixed market
25. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal
Real GDP
Capital goods
Consumption function
Command economic system
26. When people's expectations of future inflation do not change even though inflation rates change.
Tangible Assets
Seller's surplus
Stabilization policies
Anchored inflation expectations
27. The relationship between disposable income and spending on consumable goods and services
Business cycle
Consumption function
Inflationary gap
Keynesian model
28. Extreme economic growth
Boom
Reservation price
Short run equilibrium output
Potential output
29. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Pay
Income
Fractional
30. When both producers and consumers are satisfied with their quantities at market price.
Pay
Policy reaction function
Substitution bias
Market equilibrium
31. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Labor productivity
Tangible Assets
Economic efficiency
Intangible Assets
32. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Liquidity
Socially optimal quantity
Reservation price
The real GDP per person
33. Government policies aimed at stabilizing the economy by eliminating output gaps
Invisible hand
Stabilization policies
Expansionary policies
Traditional economic system
34. The degree to which people have access to goods and services that make their lives better.
Standard of living
Capitalism
Laffer curve
Invisible hand
35. There is an ___________ ___ when aggregate output is above potential output
Corporation
Reservation price
Inflationary gap
Frictional unemployment
36. The total value of goods and services produced in a country valued at current prices.
Recession
Nominal GDP
Output gap
Income
37. The annual percentage rate of change in price level reflected by price indexes
Inside lag
The rate of inflation
LRAS
Real quantity
38. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Intermediate goods
AD curve intersects the SAS curve
Sole proprietorship
Boom
39. 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.
Phillips curve
Real quantity
Law of Diminishing Marginal Utility
Unemployment insurance
40. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Monopsony
Core rate of inflation
Excess Supply
Frictional unemployment
41. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
The real GDP per person
Labor unions
AD curve intersects the SAS curve
42. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
The principle of efficiency
Price
Menu cost
Corporation
43. A record of economic increases and decreases over time.
Recession
Business cycle
Seller's reservation price
Capital goods
44. Most free-market banking systems are based on __________ reserves.
Fractional
Gross Domestic Product (GDP)
Pay
Free market
45. A large - unexpected change in the cost of resources.
Inflation
Aggregate supply shock
Seller's surplus
Disinflation
46. Business entity which legally has no separate existence from its owner.
Intangible Assets
Sole proprietorship
Reservation price
Equilibrium price
47. 1 percent more unemployment results in 2 percent less output.
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48. The level of output where output equals planned aggregate expenditure
Inside lag
Real employment
Short run equilibrium output
Macroeconomics
49. 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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50. The price of a good or service in relation to the price of other goods and services.
Liquidity
Relative price
Saving
Complement