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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. A macroeconomic policy that directly affects the structure and various institutions of an economy
Income
Structural policy
Price level
Unemployment insurance
2. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Labor productivity
Cyclical unemployment
Aggregate supply shock
3. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Recession
Substitution bias
Disinflation
Macroeconomics
4. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Saving
Capital income
Interest
Peak
5. Government policies intended to increase spending and output.
Real GDP
Price level
Saving
Expansionary policies
6. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Menu cost
Expansionary policies
Labor unions
7. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Real quantity
Inflation shock
Sole proprietorship
8. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.
Boom
Substitution effect
Marginal tax rate
Automatic stabilizers
9. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Marginal cost
Indexing
NRU
Potential output
10. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Intermediate Goods
Frictional unemployment
Output gap
11. Business entity which legally has no separate existence from its owner.
Reservation price
Labor productivity
Liquidity
Sole proprietorship
12. 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
Equilibrium price
Consumption function
Gross Domestic Product (GDP)
13. An increase in this would cause an increase in the aggregate supply
Labor productivity
Gross National Product (GNP)
Inflation inertia
Fractional
14. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Complement
Monetarism
The Wealth Effect
Consumption
15. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
NRU
Lorenz curve
Law of Demand
Fisher effect
16. The ease with which an asset can be converted to currency.
Inflation
Liquidity
Lorenz curve
Average tax rate
17. 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
Market equilibrium
Socially optimal quantity
AD curve intersects the SAS curve
18. Most free-market banking systems are based on __________ reserves.
The rate of inflation
Automatic stabilizers
Fractional
Normative analysis
19. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Capitalism
Mixed market
Economic efficiency
20. When prices fall consistently over time - leading to negative inflation.
Four sectors of the economy
Short run equilibrium output
Deflation
Worker mobility
21. When people's expectations of future inflation do not change even though inflation rates change.
Indexing
Substitution effect
Congressional budget office
Anchored inflation expectations
22. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
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23. 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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24. When inflation suddenly deviates from its normal course.
Inflation shock
Autonomous Expenditure
Labor supply
Real GDP
25. The level of output where output equals planned aggregate expenditure
Sunk cost
Outside lag
Relative price
Short run equilibrium output
26. Goods not counted in the nation's GDP.
Law of Diminishing Marginal Utility
Economic efficiency
Intermediate Goods
Exchange
27. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Automatic stabilizers
Marginal cost
Quantity equation
28. Represents the governmental tax rate that will best maximize tax revenues.
Gross Domestic Product (GDP)
Normative analysis
Laffer curve
Consumption function
29. The goods and services sector focuses largely on the level of ______ .
Real quantity
LRAS
Income
Aggregate supply
30. The difference between the price received by the seller and the seller's reservation price
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31. The labor sector highlights the rate of ____ .
Pay
Capitalism
Tangible Assets
Interest
32. Unicorporated entity that has shared ownership.
Fisher effect
Peak
Partnership
Boom
33. A measure of overall price levels at a specific point in the price index.
Price level
Aggregate Supply
Tangible Assets
Real GDP
34. The increase in total benefit that comes from producing one additional unit.
Gross National Product (GNP)
Structural policy
Socially optimal quantity
Marginal benefit
35. 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.
Gross Domestic Product (GDP)
Inflation shock
Labor unions
Stabilization policies
36. The beginning of a recession
Peak
Stabilization policies
Deflation
Invisible hand
37. 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.
Substitution effect
Macroeconomics
Intermediate goods
Command economic system
38. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Cyclical unemployment
Normative analysis
Rationing
Tangible Assets
39. The rise in taxes that occurs when before-tax income increases by one dollar
Cyclical unemployment
Invisible hand
LRAS
Marginal tax rate
40. A free market system that relies on private property ownership and supply and demand
Price
Aggregate supply shock
Gross National Product (GNP)
Capitalism
41. A record of economic increases and decreases over time.
The rate of inflation
The real GDP per person
Labor unions
Business cycle
42. Goods and services sector - Labor sector - monetary sector - international sector.
Structural policy
Seller's reservation price
Anchored inflation expectations
Four sectors of the economy
43. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Partnership
Price level
decreases increases
Market equilibrium
44. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Aggregate Supply
Planned aggregate expenditure (PAE)
Gross National Product (GNP)
Invisible hand
45. (n) something of value; a resource; an advantage
Gross National Product (GNP)
Policy reaction function
Asset
Adam Smith
46. The part of economics study that looks at the operation of a nation's economy as a whole
Inside lag
Macroeconomics
Income
Indexing
47. When the rate of inflation is extremely high.
Hyperinflation
decreases increases
Consumption
Adam Smith
48. When an economic unit makes more than it spends
Aggregate Supply
Saving
Corporation
Seller's surplus
49. Legal entity that has received a charter from a state or federal government.
The quality adjustment bias
Market equilibrium
Labor unions
Corporation
50. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Seller's surplus
Labor productivity
Economic efficiency
Price level