SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
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 part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Seller's reservation price
Sole proprietorship
Business cycle
2. The degree to which people have access to goods and services that make their lives better.
Buyer's surplus
Total surplus
Standard of living
Inflation inertia
3. A record of economic increases and decreases over time.
AD curve intersects the SAS curve
LRAS
Business cycle
Worker mobility
4. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Relative price
Socially optimal quantity
Monetarism
Rationing
5. A Scottish man (1723-1790) who is known as the father of modern economics.
Liquidity
Macroeconomics
The rate of inflation
Adam Smith
6. Represents the governmental tax rate that will best maximize tax revenues.
Output gap
Economic efficiency
Labor supply
Laffer curve
7. The amount of workers that are willing to work for a real wage.
Labor productivity
Keynesian economic theory
Intermediate Goods
Labor supply
8. Most free-market banking systems are based on __________ reserves.
Corporation
Inflation shock
Peak
Fractional
9. The time period between a policy's implementation and its desired effects on an economy.
Total surplus
Hyperinflation
Outside lag
Substitution effect
10. The basic assumption of this model is that in the short run - firms meet demand at present price.
Capitalism
The principle of efficiency
Keynesian model
Frictional unemployment
11. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Supply-side policy
Labor productivity
Excess Supply
The real GDP per person
12. A result of there only being one buyer of a resource input - good - or service.
Short run equilibrium output
The quality adjustment bias
Monopsony
NRU
13. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Standard of living
Capitalism
The quality adjustment bias
Command economic system
14. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
15. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Excess Supply
Boom
Participation rate
16. Extreme economic growth
Gross National Product (GNP)
Supply-side policy
Boom
Aggregate demand
17. 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.
Contractionary policies
Equilibrium price
Recession
Businesses
18. Describes how the economy directly effects the actions policymakers take.
Business cycle
Traditional economic system
Policy reaction function
Corporation
19. When both producers and consumers are satisfied with their quantities at market price.
Traditional economic system
Businesses
Reservation price
Market equilibrium
20. The labor sector highlights the rate of ____ .
Sole proprietorship
Policy reaction function
Pay
decreases increases
21. Caused by changes in the overall economy.
Law of Diminishing Marginal Utility
Price level
Cyclical unemployment
Marginal tax rate
22. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Lorenz curve
Disinflation
Keynesian economic theory
Laffer curve
23. 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.
Law of Diminishing Marginal Utility
Four sectors of the economy
Rationing
Laffer curve
24. When prices fall consistently over time - leading to negative inflation.
Total surplus
Interest
Deflation
Structural policy
25. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Substitution bias
Boom
AD curve intersects the SAS curve
Laffer curve
26. The rise in taxes that occurs when before-tax income increases by one dollar
Labor unions
Business cycle
Law of Supply
Marginal tax rate
27. 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.
Real employment
Price
Structural unemployment
The rate of inflation
28. The adding up of individual economic variables to obtain a large - general picture of the economy.
Substitution bias
Businesses
Monopsony
Aggregation
29. When people's expectations of future inflation do not change even though inflation rates change.
Unemployment insurance
The quality adjustment bias
Total surplus
Anchored inflation expectations
30. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Inflation shock
Law of Demand
Standard of living
31. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Frictional unemployment
Economic efficiency
Businesses
Intermediate goods
32. (n) something of value; a resource; an advantage
Intangible Assets
Asset
Socially optimal quantity
Four sectors of the economy
33. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Planned aggregate expenditure (PAE)
Structural unemployment
Relative price
Excess Supply
34. The international sector emphasizes the ________ rate.
Exchange
Quantity equation
Seller's reservation price
Policy reaction function
35. When inflation suddenly deviates from its normal course.
Buyer's surplus
Inflation shock
The quality adjustment bias
Consumption function
36. 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.
Equilibrium price
The principle of efficiency
Labor supply
Excess Supply
37. Goods and services sector - Labor sector - monetary sector - international sector.
Disinflation
Four sectors of the economy
Aggregation
Automatic stabilizers
38. The rate of price increase on all things except food and energy
Trough
Core rate of inflation
Anchored inflation expectations
Quantity equation
39. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Substitution effect
Law of Diminishing Marginal Utility
Contractionary policies
Menu cost
40. The lowest point of the recession
Income
Trough
The principle of efficiency
Planned aggregate expenditure (PAE)
41. The increase in total cost that comes from producing one additional unit of a specific good or service.
The Wealth Effect
Inflationary gap
Cyclical unemployment
Marginal cost
42. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Monetarism
Planned aggregate expenditure (PAE)
Outside lag
43. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service
44. The beginning of a recession
Inflation shock
Lorenz curve
Laffer curve
Peak
45. The monetary sector focuses on the ________ rate.
Interest
Autonomous Expenditure
Intermediate Goods
Expansionary policies
46. Organizations that act as moderators between employers and employees
Nominal GDP
Aggregate Supply
Substitution bias
Labor unions
47. The slow change in inflation from year to year in industrialized nations
Stabilization policies
Inflation inertia
Monetarism
Velocity
48. When the rate of inflation is extremely high.
Hyperinflation
Marginal tax rate
Congressional budget office
Stabilization policies
49. A quantity that is measured in real terms - the actual quantity of a good or service
Average tax rate
Seller's reservation price
Real quantity
Stabilization policies
50. 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
Standard of living
Monetarism
Credibility of monetary policy
Corporation