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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. When an economic unit makes more than it spends
Sunk cost
Intangible Assets
Relative price
Saving
2. The maximum amount that an economy can output over a period of time
Sunk cost
Keynesian economic theory
Average tax rate
Potential output
3. Maximum price that a customer is willing to pay for a good
Reservation price
Corporation
Keynesian economic theory
AD curve intersects the SAS curve
4. The percentage of working-age people within the labor force
Participation rate
Short run equilibrium output
Invisible hand
Fisher effect
5. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
AD curve intersects the SAS curve
Structural unemployment
Aggregation
Trough
6. The rate of price increase on all things except food and energy
Core rate of inflation
Short run equilibrium output
Potential output
Partnership
7. The movement of workers between jobs - companies - and industries
Worker mobility
Economic efficiency
Aggregate Supply
Macroeconomics
8. Describes how the economy directly effects the actions policymakers take.
Trough
Traditional economic system
Corporation
Policy reaction function
9. A result of there only being one buyer of a resource input - good - or service.
Consumption
Monopsony
Stabilization policies
Congressional budget office
10. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Monopsony
Rationing
Deflation
11. Patents - Goodwill - and Trademarks (lack physical substance)
Traditional economic system
Nominal GDP
Intangible Assets
Complement
12. The labor sector highlights the rate of ____ .
Monetarism
Law of Diminishing Marginal Utility
Structural policy
Pay
13. A large - unexpected change in the cost of resources.
Keynesian economic theory
Liquidity
Excess Supply
Aggregate supply shock
14. The law that states that as the price of any good or service increases - the quantity of that good or service will increase and vice versa.
Marginal benefit
Economic efficiency
Rationing
Law of Supply
15. Goods and services sector - Labor sector - monetary sector - international sector.
Substitution bias
Macroeconomics
Consumption function
Four sectors of the economy
16. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Boom
Liquidity
Economic efficiency
Corporation
17. The real cost of changing a listed price.
Market equilibrium
Menu cost
Marginal tax rate
Credibility of monetary policy
18. The relationship between disposable income and spending on consumable goods and services
Aggregation
Consumption function
Corporation
Congressional budget office
19. A policy that affects potential output
Inflation inertia
Trough
Supply-side policy
Labor productivity
20. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Structural policy
Congressional budget office
Free market
Real GDP
21. The rise in taxes that occurs when before-tax income increases by one dollar
Inflationary gap
Intangible Assets
Average tax rate
Marginal tax rate
22. The lowest point of the recession
Real employment
Trough
Expansionary policies
Unemployment insurance
23. 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.
Monopsony
Gross Domestic Product (GDP)
Anchored inflation expectations
Credibility of monetary policy
24. Goods that are used in the production of final goods.
Business cycle
Indexing
Aggregate demand
Intermediate goods
25. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Frictional unemployment
Income
Law of Diminishing Marginal Utility
26. A quantity that is measured in real terms - the actual quantity of a good or service
Interest
Real quantity
Free market
Menu cost
27. An increase in spending due to a perceived increase in wealth.
Structural unemployment
The Wealth Effect
Participation rate
Menu cost
28. Used to demonstrate shifts in income distribution among a population over time.
Short run equilibrium output
Mixed market
Lorenz curve
Reservation price
29. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Policy reaction function
Complement
Marginal benefit
Inflation inertia
30. A free market system that relies on private property ownership and supply and demand
Core rate of inflation
Inside lag
Aggregate supply
Capitalism
31. The ease with which an asset can be converted to currency.
Credibility of monetary policy
Liquidity
Expansionary policies
Reservation price
32. The government office that is responsible for projecting federal surpluses and deficits
Peak
Congressional budget office
Equilibrium price
Substitution bias
33. The increase in total cost that comes from producing one additional unit of a specific good or service.
Intermediate Goods
Marginal cost
Unemployment insurance
Rationing
34. The adding up of individual economic variables to obtain a large - general picture of the economy.
Four sectors of the economy
Autonomous Expenditure
Capital income
Aggregation
35. Payments that the government makes to unemployed workers.
Mixed market
Inflation
Disinflation
Unemployment insurance
36. A Scottish man (1723-1790) who is known as the father of modern economics.
Four sectors of the economy
Adam Smith
Hyperinflation
Liquidity
37. Used in the production of final goods - but instead of being consumed - are available for reuse.
Sole proprietorship
Relative price
Capital goods
Free market
38. The slow change in inflation from year to year in industrialized nations
LRAS
Inflation inertia
Marginal tax rate
Frictional unemployment
39. Unicorporated entity that has shared ownership.
Inside lag
Partnership
Intermediate goods
Average tax rate
40. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Structural unemployment
Disinflation
decreases increases
Aggregate demand
41. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Asset
Sunk cost
Keynesian economic theory
Gross Domestic Product (GDP)
42. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Price
Aggregate demand
Sole proprietorship
43. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Aggregation
Mixed market
Capital income
Indexing
44. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Unemployment insurance
Seller's surplus
Keynesian model
45. The amount of workers that are willing to work for a real wage.
Corporation
Equilibrium price
Sunk cost
Labor supply
46. 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.
Outside lag
Command economic system
Indexing
Macroeconomics
47. When prices fall consistently over time - leading to negative inflation.
AD curve intersects the SAS curve
Deflation
Economic efficiency
Real quantity
48. The continuing increase in the average level of prices of goods and services over time.
Inflation
Intangible Assets
Relative price
Law of Demand
49. Goods not counted in the nation's GDP.
Stabilization policies
Market equilibrium
Complement
Intermediate Goods
50. 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
Inflation inertia
Fisher effect
Pay