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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. A macroeconomic policy that directly affects the structure and various institutions of an economy
Fractional
Macroeconomics
Structural policy
Intermediate Goods
2. The continuing increase in the average level of prices of goods and services over time.
Reservation price
Consumption function
Inflation
Law of Demand
3. When inflation suddenly deviates from its normal course.
Quantity equation
Aggregate supply shock
Inflation shock
Policy reaction function
4. Unicorporated entity that has shared ownership.
Partnership
Peak
Inside lag
Laffer curve
5. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
decreases increases
Socially optimal quantity
NRU
Frictional unemployment
6. The output per employed worker
Labor productivity
Intangible Assets
Labor supply
NRU
7. 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
Command economic system
Seller's reservation price
Monetarism
Short run equilibrium output
8. Money multiplied by velocity equals nominal GDP.
Core rate of inflation
The real GDP per person
Quantity equation
LRAS
9. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Unemployment insurance
Aggregate supply shock
Cyclical unemployment
Gross National Product (GNP)
10. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).
Contractionary policies
Frictional unemployment
Traditional economic system
Peak
11. Caused by changes in the overall economy.
Structural unemployment
Aggregate supply
Law of Demand
Cyclical unemployment
12. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Automatic stabilizers
Businesses
The Wealth Effect
13. When people's expectations of future inflation do not change even though inflation rates change.
Real employment
Traditional economic system
Disinflation
Anchored inflation expectations
14. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Law of Supply
Four sectors of the economy
Short run equilibrium output
15. Goods and services sector - Labor sector - monetary sector - international sector.
Expansionary policies
Four sectors of the economy
Keynesian model
Labor supply
16. Patents - Goodwill - and Trademarks (lack physical substance)
Gross Domestic Product (GDP)
Intangible Assets
Deflation
Peak
17. The international sector emphasizes the ________ rate.
Equilibrium price
Peak
Velocity
Exchange
18. The rise in taxes that occurs when before-tax income increases by one dollar
Labor supply
Marginal tax rate
Real GDP
Policy reaction function
19. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Economic efficiency
NRU
AD curve intersects the SAS curve
Peak
20. When prices fall consistently over time - leading to negative inflation.
Deflation
Free market
Supply-side policy
Standard of living
21. Concerned with analyzing whether or not a policy should be used.
Corporation
Normative analysis
Mixed market
decreases increases
22. The speed that money changes hands in order to buy and sell final goods and services.
Cyclical unemployment
Velocity
Credibility of monetary policy
Monopsony
23. Legal entity that has received a charter from a state or federal government.
Law of Demand
Monetarism
Inflation shock
Corporation
24. The maximum amount that an economy can output over a period of time
Income
Potential output
Substitution bias
Law of Diminishing Marginal Utility
25. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
decreases increases
Market equilibrium
Velocity
26. A free market system that relies on private property ownership and supply and demand
Tangible Assets
Capitalism
Excess Supply
Frictional unemployment
27. The total planned spending on final goods and services.
Partnership
Planned aggregate expenditure (PAE)
Pay
Keynesian economic theory
28. 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
Inflationary gap
Substitution bias
Potential output
Real GDP
29. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Stabilization policies
Anchored inflation expectations
Consumption
Autonomous Expenditure
30. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Invisible hand
Monetarism
Asset
Free market
31. The increase in total cost that comes from producing one additional unit of a specific good or service.
Inflation
Marginal cost
Invisible hand
Business cycle
32. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Congressional budget office
Lorenz curve
Macroeconomics
33. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Normative analysis
Relative price
Core rate of inflation
Aggregate demand
34. (n) something of value; a resource; an advantage
Excess Supply
Consumption function
Adam Smith
Asset
35. The total value of goods and services produced in a country valued at current prices.
Nominal GDP
Keynesian economic theory
Output gap
Total surplus
36. A policy that affects potential output
Inflation inertia
Fractional
Intermediate goods
Supply-side policy
37. The time between the need for a macroeconomic policy and its implementation
Asset
Labor productivity
Inside lag
Saving
38. When the people believe that the nation's central bank will keep inflation rates low.
Laffer curve
Traditional economic system
Sunk cost
Credibility of monetary policy
39. An increase in this would cause an increase in the aggregate supply
Gross National Product (GNP)
Lorenz curve
Labor productivity
Liquidity
40. The beginning of a recession
Labor unions
Peak
Command economic system
Aggregation
41. Maximum price that a customer is willing to pay for a good
Adam Smith
Reservation price
Exchange
Inflation inertia
42. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Standard of living
Businesses
Recession
Interest
43. The slow change in inflation from year to year in industrialized nations
Output gap
Phillips curve
Real employment
Inflation inertia
44. When both producers and consumers are satisfied with their quantities at market price.
Aggregation
Market equilibrium
Pay
Substitution bias
45. 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.
Business cycle
Labor productivity
Command economic system
Nominal GDP
46. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Tangible Assets
Phillips curve
Real employment
Complement
47. 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.
Interest
Gross Domestic Product (GDP)
Inflationary gap
Marginal benefit
48. 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
Capitalism
Aggregate supply shock
Labor unions
49. 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.
Law of Demand
Sole proprietorship
Worker mobility
Boom
50. A measure of overall price levels at a specific point in the price index.
Mixed market
Seller's reservation price
Price level
Aggregate supply shock