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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. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Autonomous Expenditure
Inside lag
Contractionary policies
2. The international sector emphasizes the ________ rate.
Price
Exchange
Price level
Contractionary policies
3. When both producers and consumers are satisfied with their quantities at market price.
Lorenz curve
Four sectors of the economy
Peak
Market equilibrium
4. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Inflation shock
Excess Supply
Mixed market
Reservation price
5. Concerned with analyzing whether or not a policy should be used.
Velocity
Normative analysis
Law of Diminishing Marginal Utility
Capital goods
6. 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.
Interest
Income
Equilibrium price
Buyer's surplus
7. A quantity that is measured in real terms - the actual quantity of a good or service
Sole proprietorship
Nominal GDP
Real quantity
Law of Diminishing Marginal Utility
8. The portion of planned aggregate expenditure that is not based on output
Autonomous Expenditure
Frictional unemployment
Market equilibrium
Consumer Nondurables
9. The output per employed worker
Velocity
Price
Economic efficiency
Labor productivity
10. 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.
Sole proprietorship
Short run equilibrium output
Traditional economic system
Sunk cost
11. The increase in total cost that comes from producing one additional unit of a specific good or service.
Substitution effect
Capital income
Intermediate Goods
Marginal cost
12. The ease with which an asset can be converted to currency.
Aggregate supply
Liquidity
Sunk cost
Structural policy
13. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Output gap
Disinflation
Automatic stabilizers
Keynesian economic theory
14. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Peak
Saving
Labor supply
The real GDP per person
15. When prices fall consistently over time - leading to negative inflation.
Exchange
Deflation
Supply-side policy
Inflation inertia
16. The part of economics study that looks at the operation of a nation's economy as a whole
Output gap
Macroeconomics
Intermediate goods
Stabilization policies
17. Most free-market banking systems are based on __________ reserves.
Liquidity
Labor unions
Fractional
Consumption function
18. A policy that affects potential output
Fisher effect
NRU
Supply-side policy
Unemployment insurance
19. The time period between a policy's implementation and its desired effects on an economy.
Substitution effect
Outside lag
Inflation
Short run equilibrium output
20. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Credibility of monetary policy
AD curve intersects the SAS curve
Equilibrium price
Congressional budget office
21. The movement of workers between jobs - companies - and industries
Lorenz curve
The real GDP per person
Worker mobility
Deflation
22. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Real GDP
Aggregation
The quality adjustment bias
Real employment
23. The annual percentage rate of change in price level reflected by price indexes
Structural policy
The rate of inflation
Fisher effect
Okun's Law
24. Government policies intended to increase spending and output.
Expansionary policies
Liquidity
Marginal cost
Excess Supply
25. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Reservation price
Command economic system
Nominal GDP
26. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Marginal benefit
Buyer's surplus
Capital income
Menu cost
27. Unicorporated entity that has shared ownership.
Fractional
Partnership
Equilibrium price
The principle of efficiency
28. The price of a good or service in relation to the price of other goods and services.
Intangible Assets
Intermediate goods
Relative price
Pay
29. The degree to which people have access to goods and services that make their lives better.
Normative analysis
Standard of living
Four sectors of the economy
Outside lag
30. Patents - Goodwill - and Trademarks (lack physical substance)
Okun's Law
Aggregate Supply
Intangible Assets
Substitution bias
31. 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
Gross National Product (GNP)
Potential output
Nominal GDP
32. Describes how the economy directly effects the actions policymakers take.
Reservation price
Intangible Assets
Policy reaction function
Invisible hand
33. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Income
Expansionary policies
Keynesian model
34. The difference between the price received by the seller and the seller's reservation price
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35. 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.
Command economic system
Inflation inertia
Sunk cost
Velocity
36. The level of output where output equals planned aggregate expenditure
Anchored inflation expectations
Automatic stabilizers
Hyperinflation
Short run equilibrium output
37. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Sole proprietorship
Complement
Phillips curve
Contractionary policies
38. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Capital goods
The Wealth Effect
Market equilibrium
39. 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
Relative price
Real GDP
decreases increases
Command economic system
40. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Substitution bias
Labor supply
Aggregate demand
Pay
41. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Gross National Product (GNP)
Pay
Monetarism
Structural unemployment
42. Organizations that act as moderators between employers and employees
Worker mobility
Income
Labor productivity
Labor unions
43. The increase in total benefit that comes from producing one additional unit.
Stabilization policies
Marginal benefit
Policy reaction function
Invisible hand
44. Natural Rate of Unemployment - a rate that will always exist
NRU
Real quantity
Monopsony
Quantity equation
45. Extreme economic growth
Menu cost
Boom
Worker mobility
Inflation
46. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Okun's Law
Outside lag
The rate of inflation
47. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Inflation
Substitution effect
Market equilibrium
decreases increases
48. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Gross National Product (GNP)
Labor unions
Contractionary policies
Recession
49. The labor sector highlights the rate of ____ .
Adam Smith
Planned aggregate expenditure (PAE)
Pay
Average tax rate
50. (n) something of value; a resource; an advantage
Asset
Structural unemployment
Liquidity
Inflation