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. Maximum price that a customer is willing to pay for a good
Aggregate supply shock
Gross National Product (GNP)
Reservation price
AD curve intersects the SAS curve
2. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Equilibrium price
Keynesian economic theory
Cyclical unemployment
3. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Law of Supply
Fractional
Recession
Labor supply
4. When prices fall consistently over time - leading to negative inflation.
Hyperinflation
Equilibrium price
Four sectors of the economy
Deflation
5. 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.
Hyperinflation
Gross Domestic Product (GDP)
Adam Smith
Real quantity
6. A record of economic increases and decreases over time.
Business cycle
Monopsony
Partnership
Short run equilibrium output
7. When an economic unit makes more than it spends
The Wealth Effect
Saving
Real employment
Marginal tax rate
8. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
The principle of efficiency
Substitution effect
Socially optimal quantity
Marginal tax rate
9. 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.
Traditional economic system
Deflation
Law of Supply
Okun's Law
10. Combines pure market and command. Example: Japan
Invisible hand
Mixed market
Macroeconomics
Unemployment insurance
11. A result of there only being one buyer of a resource input - good - or service.
Anchored inflation expectations
Intangible Assets
Substitution bias
Monopsony
12. (n) something of value; a resource; an advantage
Socially optimal quantity
Output gap
Asset
Outside lag
13. Goods like food and clothing that have a short lifespan.
Unemployment insurance
Seller's surplus
Price
Consumer Nondurables
14. The level of output where output equals planned aggregate expenditure
Intermediate goods
Sole proprietorship
Short run equilibrium output
Macroeconomics
15. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Mixed market
The real GDP per person
Exchange
Aggregation
16. A macroeconomic policy that directly affects the structure and various institutions of an economy
Price
Structural policy
Labor unions
Free market
17. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross National Product (GNP)
Labor productivity
Adam Smith
Law of Demand
18. The basic assumption of this model is that in the short run - firms meet demand at present price.
Labor productivity
Keynesian model
Disinflation
Four sectors of the economy
19. A policy that affects potential output
Nominal GDP
Economic efficiency
Supply-side policy
Asset
20. Total supply of goods and services in an economy
Expansionary policies
Aggregate supply
Substitution effect
Credibility of monetary policy
21. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Normative analysis
LRAS
Phillips curve
Free market
22. A large - unexpected change in the cost of resources.
Labor productivity
Structural unemployment
Autonomous Expenditure
Aggregate supply shock
23. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
24. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Output gap
Nominal GDP
Mixed market
Complement
25. Represents the governmental tax rate that will best maximize tax revenues.
Aggregate Supply
Price level
Output gap
Laffer curve
26. The difference between the price received by the seller and the seller's reservation price
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
27. The total planned spending on final goods and services.
Disinflation
Labor productivity
Planned aggregate expenditure (PAE)
Substitution effect
28. 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.
Fractional
Law of Supply
LRAS
Traditional economic system
29. The output per employed worker
Real GDP
Labor productivity
Laffer curve
Reservation price
30. The adding up of individual economic variables to obtain a large - general picture of the economy.
Relative price
Aggregate Supply
Aggregation
Okun's Law
31. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Consumer Nondurables
Marginal cost
Credibility of monetary policy
Indexing
32. The portion of planned aggregate expenditure that is not based on output
Potential output
Consumption function
Autonomous Expenditure
Fractional
33. 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.
Congressional budget office
Contractionary policies
Stabilization policies
Marginal cost
34. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Command economic system
The real GDP per person
Inflation shock
35. Total tax paid divided by total (taxable) income - as a percentage.
Capitalism
Worker mobility
Average tax rate
Traditional economic system
36. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.
Anchored inflation expectations
Command economic system
Consumption
Economic efficiency
37. 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
38. The government office that is responsible for projecting federal surpluses and deficits
Inflationary gap
Hyperinflation
Congressional budget office
Potential output
39. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Pay
Phillips curve
Free market
40. Government policies intended to increase spending and output.
Law of Supply
Fisher effect
The real GDP per person
Expansionary policies
41. The slow change in inflation from year to year in industrialized nations
Quantity equation
Deflation
Inflation inertia
Real employment
42. When the rate of inflation is extremely high.
Disinflation
Hyperinflation
Potential output
Worker mobility
43. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Substitution bias
Intermediate goods
Sunk cost
44. The degree to which people have access to goods and services that make their lives better.
Standard of living
Aggregate supply shock
Structural policy
Substitution bias
45. The monetary sector focuses on the ________ rate.
Total surplus
Nominal GDP
Structural unemployment
Interest
46. The goods and services sector focuses largely on the level of ______ .
Aggregate demand
Income
Excess Supply
Hyperinflation
47. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Standard of living
Substitution effect
Buyer's surplus
Inflation
48. An increase in this would cause an increase in the aggregate supply
Reservation price
Aggregation
Labor productivity
LRAS
49. The continuing increase in the average level of prices of goods and services over time.
Capital goods
Inflation
Trough
Complement
50. Goods not counted in the nation's GDP.
Stabilization policies
Policy reaction function
Price level
Intermediate Goods