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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.
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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. The adding up of individual economic variables to obtain a large - general picture of the economy.
The quality adjustment bias
Inflation shock
Aggregation
Hyperinflation
2. The difference between the price received by the seller and the seller's reservation price
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3. 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
Monopsony
Expansionary policies
Consumption function
4. When the people believe that the nation's central bank will keep inflation rates low.
Substitution effect
Frictional unemployment
Credibility of monetary policy
Capitalism
5. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Aggregate supply shock
Labor unions
The real GDP per person
6. Most free-market banking systems are based on __________ reserves.
The Wealth Effect
Fractional
Keynesian model
Market equilibrium
7. Legal entity that has received a charter from a state or federal government.
Saving
Corporation
Structural unemployment
Total surplus
8. When an economic unit makes more than it spends
Labor productivity
Saving
Intermediate goods
Tangible Assets
9. A measure of overall price levels at a specific point in the price index.
Real employment
Short run equilibrium output
Price level
Fisher effect
10. Used in the production of final goods - but instead of being consumed - are available for reuse.
Substitution effect
Capital income
Capital goods
Inside lag
11. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Aggregate supply
Law of Demand
Structural policy
Output gap
12. A free market system that relies on private property ownership and supply and demand
decreases increases
Cyclical unemployment
Traditional economic system
Capitalism
13. Payments that the government makes to unemployed workers.
Monetarism
Reservation price
Participation rate
Unemployment insurance
14. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Expansionary policies
Intangible Assets
Substitution effect
The rate of inflation
15. 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.
Okun's Law
Four sectors of the economy
Worker mobility
Command economic system
16. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Real GDP
Relative price
Total surplus
Invisible hand
17. 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.
Deflation
Law of Supply
Market equilibrium
Peak
18. 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.
Reservation price
Phillips curve
Law of Supply
Traditional economic system
19. The part of economics study that looks at the operation of a nation's economy as a whole
Fisher effect
Macroeconomics
Automatic stabilizers
Real GDP
20. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Okun's Law
Law of Diminishing Marginal Utility
Aggregate supply shock
21. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
LRAS
Velocity
Policy reaction function
Law of Supply
22. A large - unexpected change in the cost of resources.
Aggregate supply shock
Sole proprietorship
Capital goods
Gross Domestic Product (GDP)
23. Combines pure market and command. Example: Japan
Price
Saving
Keynesian model
Mixed market
24. Total tax paid divided by total (taxable) income - as a percentage.
Keynesian model
Sunk cost
Corporation
Average tax rate
25. The percentage of working-age people within the labor force
Corporation
NRU
Relative price
Participation rate
26. (n) something of value; a resource; an advantage
Mixed market
Asset
Price level
Credibility of monetary policy
27. When prices fall consistently over time - leading to negative inflation.
Economic efficiency
Tangible Assets
Peak
Deflation
28. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Inflation inertia
Capital income
Worker mobility
Disinflation
29. The maximum amount that an economy can output over a period of time
Traditional economic system
Potential output
Rationing
Consumer Nondurables
30. Represents the governmental tax rate that will best maximize tax revenues.
Phillips curve
Capital income
Laffer curve
Peak
31. The level of output where output equals planned aggregate expenditure
Gross Domestic Product (GDP)
Short run equilibrium output
AD curve intersects the SAS curve
Fractional
32. The portion of planned aggregate expenditure that is not based on output
Command economic system
Autonomous Expenditure
Fisher effect
Monetarism
33. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Inflation
Disinflation
Asset
34. Caused by changes in the overall economy.
Contractionary policies
Cyclical unemployment
Trough
The rate of inflation
35. The increase in total cost that comes from producing one additional unit of a specific good or service.
Monetarism
Marginal benefit
Aggregation
Marginal cost
36. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Frictional unemployment
Inflation inertia
Aggregate Supply
Fisher effect
37. That efficiency leads to economic prosperity for all.
Businesses
Output gap
Peak
The principle of efficiency
38. Goods that are used in the production of final goods.
Intermediate goods
Normative analysis
Marginal benefit
Congressional budget office
39. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service
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40. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Keynesian economic theory
Socially optimal quantity
Saving
LRAS
41. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Seller's reservation price
Aggregation
Aggregate demand
AD curve intersects the SAS curve
42. Business entity which legally has no separate existence from its owner.
Interest
Sole proprietorship
Reservation price
Labor productivity
43. Government policies intended to increase spending and output.
AD curve intersects the SAS curve
Expansionary policies
decreases increases
Output gap
44. Patents - Goodwill - and Trademarks (lack physical substance)
Sunk cost
Intangible Assets
Nominal GDP
Keynesian economic theory
45. 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
Disinflation
Command economic system
The real GDP per person
46. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
NRU
Credibility of monetary policy
The real GDP per person
Congressional budget office
47. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Laffer curve
Economic efficiency
Sunk cost
48. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Real employment
Consumer Nondurables
Macroeconomics
Phillips curve
49. The labor sector highlights the rate of ____ .
Seller's reservation price
Trough
Anchored inflation expectations
Pay
50. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.
Economic efficiency
Outside lag
Equilibrium price
The quality adjustment bias
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