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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. The total value of goods and services produced in a country valued at current prices.
Unemployment insurance
Nominal GDP
Capital goods
Marginal tax rate
2. 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.
Stabilization policies
Law of Demand
Real quantity
Price level
3. Goods and services sector - Labor sector - monetary sector - international sector.
Velocity
Fractional
Command economic system
Four sectors of the economy
4. 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
Intermediate Goods
Automatic stabilizers
Lorenz curve
5. A measure of overall price levels at a specific point in the price index.
Contractionary policies
Free market
Price level
Gross National Product (GNP)
6. The slow change in inflation from year to year in industrialized nations
Four sectors of the economy
Disinflation
Credibility of monetary policy
Inflation inertia
7. When the rate of inflation is extremely high.
Relative price
Laffer curve
Hyperinflation
Free market
8. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Quantity equation
Normative analysis
Fisher effect
Pay
9. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Hyperinflation
Participation rate
AD curve intersects the SAS curve
Price level
10. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Real quantity
Worker mobility
Real employment
11. 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.
Trough
Automatic stabilizers
Gross Domestic Product (GDP)
Saving
12. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Deflation
Lorenz curve
Exchange
13. The ease with which an asset can be converted to currency.
Congressional budget office
Frictional unemployment
Intermediate goods
Liquidity
14. Government policies intended to increase spending and output.
Core rate of inflation
Expansionary policies
Macroeconomics
Fisher effect
15. The percentage of working-age people within the labor force
Outside lag
Participation rate
Policy reaction function
Aggregate supply shock
16. Describes how the economy directly effects the actions policymakers take.
Traditional economic system
Substitution effect
Policy reaction function
Standard of living
17. The amount of workers that are willing to work for a real wage.
Automatic stabilizers
Command economic system
Labor supply
Intermediate Goods
18. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Income
Boom
The quality adjustment bias
Nominal GDP
19. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Menu cost
Asset
Sunk cost
Intermediate goods
20. The degree to which people have access to goods and services that make their lives better.
Command economic system
Standard of living
Inflationary gap
Hyperinflation
21. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Credibility of monetary policy
Supply-side policy
Income
Socially optimal quantity
22. Real Estate - Equipment - and Cash (physical assets)
Gross National Product (GNP)
Real quantity
Tangible Assets
Autonomous Expenditure
23. The relationship between disposable income and spending on consumable goods and services
Businesses
Asset
Real quantity
Consumption function
24. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Invisible hand
Boom
Capital income
Seller's surplus
25. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Excess Supply
Frictional unemployment
Inside lag
26. 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.
Law of Supply
Sunk cost
Structural policy
Corporation
27. Used in the production of final goods - but instead of being consumed - are available for reuse.
Rationing
Worker mobility
Aggregate demand
Capital goods
28. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Free market
Nominal GDP
Anchored inflation expectations
29. Government policies aimed at stabilizing the economy by eliminating output gaps
Velocity
Stabilization policies
Complement
Economic efficiency
30. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Consumption function
Marginal tax rate
Supply-side policy
Recession
31. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Sunk cost
Aggregate Supply
Core rate of inflation
Complement
32. 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.
Unemployment insurance
Potential output
Law of Diminishing Marginal Utility
Free market
33. Business entity which legally has no separate existence from its owner.
Inside lag
Marginal tax rate
Law of Supply
Sole proprietorship
34. The movement of workers between jobs - companies - and industries
Worker mobility
Market equilibrium
Quantity equation
Command economic system
35. The time between the need for a macroeconomic policy and its implementation
Exchange
Quantity equation
Interest
Inside lag
36. The maximum amount that an economy can output over a period of time
Fisher effect
Short run equilibrium output
Potential output
Monetarism
37. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Tangible Assets
Invisible hand
Fisher effect
Keynesian model
38. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Structural unemployment
The real GDP per person
Aggregate supply shock
Intermediate goods
39. A policy that affects potential output
Supply-side policy
Gross National Product (GNP)
Deflation
Labor unions
40. 1 percent more unemployment results in 2 percent less output.
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41. A quantity that is measured in real terms - the actual quantity of a good or service
Intangible Assets
Nominal GDP
Price level
Real quantity
42. Most free-market banking systems are based on __________ reserves.
Structural unemployment
Monopsony
Fractional
Capitalism
43. Caused by changes in the overall economy.
Cyclical unemployment
Consumer Nondurables
Automatic stabilizers
Equilibrium price
44. A large - unexpected change in the cost of resources.
Capital goods
Income
Keynesian economic theory
Aggregate supply shock
45. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Inside lag
Command economic system
Tangible Assets
46. The rate of price increase on all things except food and energy
Autonomous Expenditure
Inflation
Outside lag
Core rate of inflation
47. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Seller's reservation price
Partnership
Monetarism
48. 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.
Short run equilibrium output
Real employment
Pay
Income
49. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Marginal tax rate
Economic efficiency
Labor productivity
50. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Equilibrium price
Reservation price
Law of Supply