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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. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
The principle of efficiency
Aggregate demand
Consumption
Core rate of inflation
2. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Price
Deflation
Lorenz curve
Unemployment insurance
3. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Law of Diminishing Marginal Utility
Reservation price
Labor unions
4. Organizations that act as moderators between employers and employees
Labor unions
Intermediate Goods
Consumer Nondurables
Monetarism
5. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Aggregate demand
Keynesian economic theory
Four sectors of the economy
Fractional
6. 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
AD curve intersects the SAS curve
Normative analysis
Fractional
Real GDP
7. The continuing increase in the average level of prices of goods and services over time.
Anchored inflation expectations
Consumption function
Automatic stabilizers
Inflation
8. When prices fall consistently over time - leading to negative inflation.
Law of Demand
The rate of inflation
Deflation
Pay
9. Business entity which legally has no separate existence from its owner.
Sole proprietorship
Cyclical unemployment
Liquidity
Average tax rate
10. Money multiplied by velocity equals nominal GDP.
LRAS
Aggregate supply
Quantity equation
Outside lag
11. The basic assumption of this model is that in the short run - firms meet demand at present price.
Price level
Keynesian model
Inflation shock
Income
12. The degree to which people have access to goods and services that make their lives better.
Capital income
Standard of living
Boom
Aggregate supply
13. The international sector emphasizes the ________ rate.
Market equilibrium
Corporation
Exchange
Substitution bias
14. The portion of planned aggregate expenditure that is not based on output
Automatic stabilizers
Congressional budget office
Rationing
Autonomous Expenditure
15. Caused by changes in the overall economy.
Saving
Complement
Cyclical unemployment
Capital goods
16. There is an ___________ ___ when aggregate output is above potential output
Adam Smith
The quality adjustment bias
Real quantity
Inflationary gap
17. The rate of price increase on all things except food and energy
Autonomous Expenditure
Core rate of inflation
Output gap
The principle of efficiency
18. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Indexing
Structural policy
Partnership
19. The monetary sector focuses on the ________ rate.
Autonomous Expenditure
Interest
Liquidity
Sunk cost
20. The speed that money changes hands in order to buy and sell final goods and services.
LRAS
Consumption
Labor productivity
Velocity
21. When an economic unit makes more than it spends
Marginal benefit
Anchored inflation expectations
Tangible Assets
Saving
22. The price of a good or service in relation to the price of other goods and services.
Relative price
Labor productivity
Total surplus
Inflation inertia
23. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Law of Demand
Businesses
Core rate of inflation
Supply-side policy
24. The total value of goods and services produced in a country valued at current prices.
The real GDP per person
Mixed market
Gross National Product (GNP)
Nominal GDP
25. Concerned with analyzing whether or not a policy should be used.
Aggregate supply shock
Normative analysis
Quantity equation
Total surplus
26. The part of economics study that looks at the operation of a nation's economy as a whole
Asset
Invisible hand
Macroeconomics
Labor supply
27. The time period between a policy's implementation and its desired effects on an economy.
The real GDP per person
Outside lag
Keynesian model
Standard of living
28. 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
Inflationary gap
Socially optimal quantity
Consumer Nondurables
29. The labor sector highlights the rate of ____ .
Planned aggregate expenditure (PAE)
Rationing
Pay
Core rate of inflation
30. The annual percentage rate of change in price level reflected by price indexes
Total surplus
Marginal cost
Traditional economic system
The rate of inflation
31. When the rate of inflation is extremely high.
Phillips curve
Substitution bias
Hyperinflation
Lorenz curve
32. Legal entity that has received a charter from a state or federal government.
Law of Demand
Labor productivity
Corporation
Laffer curve
33. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
The real GDP per person
Consumer Nondurables
Potential output
Gross Domestic Product (GDP)
34. The increase in total cost that comes from producing one additional unit of a specific good or service.
Total surplus
Marginal cost
Free market
Expansionary policies
35. An increase in this would cause an increase in the aggregate supply
Labor productivity
Aggregate Supply
Saving
Aggregation
36. Total supply of goods and services in an economy
Aggregate supply
Lorenz curve
Law of Supply
Okun's Law
37. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Buyer's surplus
Participation rate
Outside lag
38. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Lorenz curve
Aggregate supply
Aggregate demand
Cyclical unemployment
39. That efficiency leads to economic prosperity for all.
Credibility of monetary policy
The principle of efficiency
Aggregate Supply
Asset
40. Natural Rate of Unemployment - a rate that will always exist
Corporation
Normative analysis
Saving
NRU
41. Goods like food and clothing that have a short lifespan.
Disinflation
Exchange
Reservation price
Consumer Nondurables
42. Used in the production of final goods - but instead of being consumed - are available for reuse.
The quality adjustment bias
Invisible hand
Capital goods
Inflationary gap
43. Goods not counted in the nation's GDP.
Law of Supply
Intermediate Goods
Partnership
Gross National Product (GNP)
44. The goods and services sector focuses largely on the level of ______ .
Aggregate Supply
Traditional economic system
Stabilization policies
Income
45. The increase in total benefit that comes from producing one additional unit.
Rationing
Marginal benefit
Inflation
Lorenz curve
46. The difference between the price received by the seller and the seller's reservation price
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47. Used to demonstrate shifts in income distribution among a population over time.
Anchored inflation expectations
Reservation price
Lorenz curve
Consumption
48. Unicorporated entity that has shared ownership.
Average tax rate
Free market
Contractionary policies
Partnership
49. When the people believe that the nation's central bank will keep inflation rates low.
Trough
Consumer Nondurables
Credibility of monetary policy
Liquidity
50. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Output gap
Complement
Nominal GDP
Intangible Assets