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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. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
The Wealth Effect
Expansionary policies
Total surplus
Deflation
2. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Nominal GDP
Equilibrium price
Rationing
Mixed market
3. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Intermediate goods
Frictional unemployment
Real GDP
Excess Supply
4. When inflation suddenly deviates from its normal course.
Business cycle
Inflation shock
Lorenz curve
Corporation
5. The amount of workers that are willing to work for a real wage.
Consumption function
Economic efficiency
Business cycle
Labor supply
6. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Laffer curve
Interest
Consumption
7. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Marginal cost
Keynesian model
Keynesian economic theory
The principle of efficiency
8. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
decreases increases
Average tax rate
Invisible hand
Peak
9. The labor sector highlights the rate of ____ .
Marginal cost
The Wealth Effect
Pay
Supply-side policy
10. Unicorporated entity that has shared ownership.
The principle of efficiency
Partnership
Expansionary policies
Business cycle
11. 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
Command economic system
Labor productivity
Price
Real GDP
12. An increase in spending due to a perceived increase in wealth.
Economic efficiency
The Wealth Effect
Congressional budget office
Equilibrium price
13. The increase in total benefit that comes from producing one additional unit.
Average tax rate
Recession
Marginal benefit
Buyer's surplus
14. Patents - Goodwill - and Trademarks (lack physical substance)
Gross Domestic Product (GDP)
Intangible Assets
Cyclical unemployment
Anchored inflation expectations
15. The international sector emphasizes the ________ rate.
Exchange
Standard of living
Consumption function
Seller's reservation price
16. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Total surplus
Law of Demand
Free market
Business cycle
17. Money multiplied by velocity equals nominal GDP.
Business cycle
Anchored inflation expectations
Quantity equation
Aggregate supply shock
18. The goods and services sector focuses largely on the level of ______ .
Free market
Income
Potential output
Keynesian economic theory
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
Aggregate demand
Phillips curve
Law of Supply
20. Organizations that act as moderators between employers and employees
Labor unions
Structural unemployment
Four sectors of the economy
Substitution bias
21. 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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22. The percentage of working-age people within the labor force
Total surplus
Inflation shock
Equilibrium price
Participation rate
23. Goods and services sector - Labor sector - monetary sector - international sector.
Potential output
Partnership
Indexing
Four sectors of the economy
24. 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.
The principle of efficiency
Partnership
Law of Diminishing Marginal Utility
Recession
25. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Intangible Assets
Capital goods
Real employment
26. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
Expansionary policies
Credibility of monetary policy
Labor supply
27. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Consumption function
Capital goods
Worker mobility
28. Goods that are used in the production of final goods.
Command economic system
Law of Demand
Intermediate goods
Price level
29. The basic assumption of this model is that in the short run - firms meet demand at present price.
Average tax rate
Keynesian model
Disinflation
Capital goods
30. 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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31. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Credibility of monetary policy
Traditional economic system
Sunk cost
Capital income
32. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Keynesian model
Intangible Assets
Pay
33. Used in the production of final goods - but instead of being consumed - are available for reuse.
Intangible Assets
Invisible hand
Laffer curve
Capital goods
34. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Inflation shock
Aggregate Supply
Inflation inertia
The rate of inflation
35. That efficiency leads to economic prosperity for all.
The principle of efficiency
Capital income
Cyclical unemployment
Saving
36. The difference between the price received by the seller and the seller's reservation price
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37. The time period between a policy's implementation and its desired effects on an economy.
Aggregate demand
Core rate of inflation
Outside lag
Keynesian economic theory
38. The relationship between disposable income and spending on consumable goods and services
Sunk cost
Consumption function
Total surplus
Fisher effect
39. A large - unexpected change in the cost of resources.
Business cycle
Worker mobility
Aggregate supply shock
Law of Supply
40. A measure of overall price levels at a specific point in the price index.
Worker mobility
NRU
Laffer curve
Price level
41. Most free-market banking systems are based on __________ reserves.
Policy reaction function
Price
Equilibrium price
Fractional
42. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Supply-side policy
Exchange
Substitution effect
Fractional
43. Goods not counted in the nation's GDP.
Phillips curve
Invisible hand
Intermediate Goods
Fisher effect
44. The degree to which people have access to goods and services that make their lives better.
Gross Domestic Product (GDP)
Exchange
Standard of living
Aggregate supply shock
45. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Mixed market
decreases increases
Liquidity
Market equilibrium
46. Real Estate - Equipment - and Cash (physical assets)
Intermediate goods
Price level
Capitalism
Tangible Assets
47. When the rate of inflation is extremely high.
Real employment
Okun's Law
Hyperinflation
Labor productivity
48. The adding up of individual economic variables to obtain a large - general picture of the economy.
Outside lag
Law of Diminishing Marginal Utility
Aggregate supply shock
Aggregation
49. Extreme economic growth
Potential output
Substitution effect
Command economic system
Boom
50. A Scottish man (1723-1790) who is known as the father of modern economics.
Real GDP
Participation rate
Adam Smith
The rate of inflation