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. The degree to which people have access to goods and services that make their lives better.
Capitalism
Capital income
Standard of living
Worker mobility
2. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Worker mobility
Congressional budget office
Law of Supply
3. 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
4. The government office that is responsible for projecting federal surpluses and deficits
Core rate of inflation
Congressional budget office
Inflation
Aggregate supply
5. Total supply of goods and services in an economy
Aggregation
Aggregate supply
Liquidity
Price level
6. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Excess Supply
Real quantity
Monopsony
decreases increases
7. 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
Planned aggregate expenditure (PAE)
Partnership
Substitution bias
Exchange
8. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Nominal GDP
Relative price
Output gap
Traditional economic system
9. Goods that are used in the production of final goods.
Aggregate demand
Intermediate goods
Monopsony
Expansionary policies
10. A quantity that is measured in real terms - the actual quantity of a good or service
Monopsony
Real quantity
Law of Diminishing Marginal Utility
Short run equilibrium output
11. Organizations that act as moderators between employers and employees
Phillips curve
Market equilibrium
Labor unions
The rate of inflation
12. 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.
Standard of living
Law of Demand
Tangible Assets
Labor productivity
13. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Partnership
Lorenz curve
Capital income
Rationing
14. The lowest point of the recession
Pay
Trough
Inflation shock
Labor productivity
15. Unicorporated entity that has shared ownership.
Traditional economic system
Short run equilibrium output
Partnership
Aggregation
16. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Quantity equation
Partnership
NRU
Sunk cost
17. An increase in this would cause an increase in the aggregate supply
Peak
Substitution bias
Labor productivity
Price
18. Describes how the economy directly effects the actions policymakers take.
Command economic system
Capital goods
Unemployment insurance
Policy reaction function
19. The labor sector highlights the rate of ____ .
Traditional economic system
Pay
Seller's reservation price
Complement
20. The increase in total cost that comes from producing one additional unit of a specific good or service.
Monopsony
Marginal cost
Indexing
Price level
21. Payments that the government makes to unemployed workers.
Okun's Law
Anchored inflation expectations
Seller's reservation price
Unemployment insurance
22. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Core rate of inflation
Supply-side policy
Income
23. A macroeconomic policy that directly affects the structure and various institutions of an economy
Inflation shock
Keynesian economic theory
Participation rate
Structural policy
24. 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
Structural policy
Real GDP
Law of Supply
Autonomous Expenditure
25. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
The quality adjustment bias
Inflation
Expansionary policies
Quantity equation
26. The monetary sector focuses on the ________ rate.
Velocity
Labor productivity
Interest
Aggregate supply
27. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Automatic stabilizers
Socially optimal quantity
Short run equilibrium output
28. The maximum amount that an economy can output over a period of time
Buyer's surplus
Potential output
Sole proprietorship
Gross Domestic Product (GDP)
29. When the rate of inflation is extremely high.
Hyperinflation
Supply-side policy
Autonomous Expenditure
Labor unions
30. The rise in taxes that occurs when before-tax income increases by one dollar
Outside lag
Marginal tax rate
Seller's reservation price
Law of Supply
31. Legal entity that has received a charter from a state or federal government.
Equilibrium price
Excess Supply
Corporation
The rate of inflation
32. Goods not counted in the nation's GDP.
Output gap
Fractional
Intermediate Goods
Sunk cost
33. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Credibility of monetary policy
Monopsony
Free market
The rate of inflation
34. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Fisher effect
Aggregate supply shock
Interest
35. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Law of Supply
Substitution effect
Sunk cost
Income
36. The percentage of working-age people within the labor force
Cyclical unemployment
Participation rate
Short run equilibrium output
Laffer curve
37. A policy that affects potential output
Outside lag
Aggregate supply
Contractionary policies
Supply-side policy
38. The continuing increase in the average level of prices of goods and services over time.
Inflation
Law of Supply
Autonomous Expenditure
Contractionary policies
39. 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.
Peak
Substitution effect
Keynesian model
Contractionary policies
40. Most free-market banking systems are based on __________ reserves.
Hyperinflation
Aggregate supply shock
Fractional
Asset
41. Extreme economic growth
Aggregate Supply
Boom
Real employment
Marginal cost
42. A large - unexpected change in the cost of resources.
Unemployment insurance
Intermediate Goods
Aggregate supply shock
Hyperinflation
43. The increase in total benefit that comes from producing one additional unit.
Velocity
Fisher effect
Price level
Marginal benefit
44. Natural Rate of Unemployment - a rate that will always exist
Capitalism
NRU
Sole proprietorship
Capital goods
45. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.
Businesses
Keynesian model
Real employment
Contractionary policies
46. The slow change in inflation from year to year in industrialized nations
Anchored inflation expectations
Marginal benefit
Inflation inertia
Autonomous Expenditure
47. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Normative analysis
Seller's surplus
Recession
48. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Relative price
Sunk cost
Standard of living
49. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
50. The basic assumption of this model is that in the short run - firms meet demand at present price.
Adam Smith
Keynesian model
Excess Supply
Structural unemployment