SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. When an economic unit makes more than it spends
Saving
Monopsony
Keynesian economic theory
Law of Diminishing Marginal Utility
2. The time period between a policy's implementation and its desired effects on an economy.
Worker mobility
Outside lag
Anchored inflation expectations
Aggregate Supply
3. When inflation suddenly deviates from its normal course.
Seller's surplus
Inflation shock
Supply-side policy
Velocity
4. A record of economic increases and decreases over time.
Planned aggregate expenditure (PAE)
Sunk cost
Business cycle
Supply-side policy
5. When people's expectations of future inflation do not change even though inflation rates change.
Aggregate Supply
Anchored inflation expectations
Fractional
Average tax rate
6. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Free market
Inflation shock
Capitalism
Phillips curve
7. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
decreases increases
Saving
Business cycle
Businesses
8. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Free market
Economic efficiency
Interest
Gross National Product (GNP)
9. The portion of planned aggregate expenditure that is not based on output
Socially optimal quantity
Sunk cost
Anchored inflation expectations
Autonomous Expenditure
10. Goods that are used in the production of final goods.
Free market
Keynesian economic theory
Pay
Intermediate goods
11. 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
Seller's reservation price
Inflation
Monetarism
Asset
12. Combines pure market and command. Example: Japan
Total surplus
Macroeconomics
Normative analysis
Mixed market
13. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Credibility of monetary policy
Core rate of inflation
Inside lag
AD curve intersects the SAS curve
14. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Inside lag
Law of Demand
Pay
15. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Okun's Law
Output gap
Price
Substitution effect
16. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Liquidity
Policy reaction function
Equilibrium price
Structural unemployment
17. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Gross Domestic Product (GDP)
Output gap
Buyer's surplus
18. Goods and services sector - Labor sector - monetary sector - international sector.
Law of Diminishing Marginal Utility
Cyclical unemployment
Marginal benefit
Four sectors of the economy
19. 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
Adam Smith
Marginal cost
Keynesian model
20. The monetary sector focuses on the ________ rate.
Potential output
Keynesian model
Sole proprietorship
Interest
21. The goods and services sector focuses largely on the level of ______ .
Income
Policy reaction function
Potential output
Corporation
22. The ease with which an asset can be converted to currency.
Liquidity
Capital income
Indexing
Menu cost
23. Used in the production of final goods - but instead of being consumed - are available for reuse.
Real quantity
Interest
Marginal tax rate
Capital goods
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.
Businesses
Law of Demand
Deflation
Law of Supply
25. A result of there only being one buyer of a resource input - good - or service.
Monopsony
Fractional
The principle of efficiency
Asset
26. Goods like food and clothing that have a short lifespan.
Consumption
Consumer Nondurables
Inflationary gap
Equilibrium price
27. 1 percent more unemployment results in 2 percent less output.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
28. Real Estate - Equipment - and Cash (physical assets)
NRU
The rate of inflation
Contractionary policies
Tangible Assets
29. 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.
Market equilibrium
Aggregate demand
Contractionary policies
Quantity equation
30. 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.
Inflation
Complement
Law of Demand
Aggregate supply
31. The lowest point of the recession
LRAS
Adam Smith
Structural policy
Trough
32. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Outside lag
Real quantity
Structural unemployment
33. 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
Labor unions
Automatic stabilizers
Normative analysis
Substitution bias
34. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Price level
AD curve intersects the SAS curve
Indexing
Buyer's surplus
35. The real cost of changing a listed price.
Business cycle
Inflation shock
Cyclical unemployment
Menu cost
36. A free market system that relies on private property ownership and supply and demand
Capitalism
Market equilibrium
Core rate of inflation
NRU
37. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Keynesian economic theory
Core rate of inflation
Menu cost
38. The annual percentage rate of change in price level reflected by price indexes
Marginal tax rate
The rate of inflation
Traditional economic system
Consumer Nondurables
39. When prices fall consistently over time - leading to negative inflation.
Exchange
Real quantity
Deflation
Inflation
40. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Real GDP
Planned aggregate expenditure (PAE)
Sunk cost
LRAS
41. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Consumption
Inside lag
Aggregate supply shock
42. Extreme economic growth
Worker mobility
Equilibrium price
Boom
Socially optimal quantity
43. 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.
Core rate of inflation
Labor productivity
Law of Diminishing Marginal Utility
Anchored inflation expectations
44. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Capital income
Inflation shock
Adam Smith
45. An increase in spending due to a perceived increase in wealth.
Anchored inflation expectations
The Wealth Effect
Trough
Law of Diminishing Marginal Utility
46. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Buyer's surplus
Macroeconomics
Corporation
Substitution effect
47. The labor sector highlights the rate of ____ .
Macroeconomics
Pay
Average tax rate
Adam Smith
48. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
decreases increases
Keynesian economic theory
Structural unemployment
Seller's reservation price
49. Total supply of goods and services in an economy
Liquidity
Fisher effect
Aggregate supply
Inflationary gap
50. Represents the governmental tax rate that will best maximize tax revenues.
Law of Diminishing Marginal Utility
Mixed market
Command economic system
Laffer curve