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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 amount of workers that are willing to work for a real wage.
Intangible Assets
Marginal benefit
Labor supply
Trough
2. Business entity which legally has no separate existence from its owner.
Liquidity
Recession
Quantity equation
Sole proprietorship
3. 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
Seller's surplus
Monetarism
Real GDP
Normative analysis
4. The real cost of changing a listed price.
Menu cost
Deflation
The real GDP per person
Labor unions
5. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Quantity equation
Disinflation
Aggregate supply shock
6. An increase in this would cause an increase in the aggregate supply
The quality adjustment bias
Real GDP
Labor productivity
Disinflation
7. The movement of workers between jobs - companies - and industries
Gross Domestic Product (GDP)
Law of Demand
Deflation
Worker mobility
8. The goods and services sector focuses largely on the level of ______ .
Keynesian model
Income
Standard of living
Labor supply
9. 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.
Tangible Assets
Marginal benefit
Real employment
Complement
10. The level of output where output equals planned aggregate expenditure
Fisher effect
Congressional budget office
Short run equilibrium output
Aggregate supply shock
11. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Capitalism
Inside lag
Trough
12. The rate of price increase on all things except food and energy
Structural unemployment
Inflation shock
Core rate of inflation
Policy reaction function
13. 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
Quantity equation
Liquidity
Real GDP
Inflation
14. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Tangible Assets
Core rate of inflation
Reservation price
Output gap
15. The increase in total benefit that comes from producing one additional unit.
Laffer curve
Marginal benefit
Partnership
Inside lag
16. The total value of goods and services produced in a country valued at current prices.
Nominal GDP
Structural policy
Intermediate Goods
Partnership
17. A measure of overall price levels at a specific point in the price index.
Inflationary gap
Price level
Average tax rate
Automatic stabilizers
18. The international sector emphasizes the ________ rate.
Exchange
Gross Domestic Product (GDP)
Consumption function
Keynesian model
19. The price of a good or service in relation to the price of other goods and services.
Relative price
Structural unemployment
Aggregate supply shock
Law of Supply
20. The basic assumption of this model is that in the short run - firms meet demand at present price.
Supply-side policy
Partnership
Intermediate goods
Keynesian model
21. The difference between the price received by the seller and the seller's reservation price
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22. Total tax paid divided by total (taxable) income - as a percentage.
Capital goods
Planned aggregate expenditure (PAE)
Potential output
Average tax rate
23. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Reservation price
Gross National Product (GNP)
The quality adjustment bias
Outside lag
24. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Labor productivity
Excess Supply
Monetarism
Congressional budget office
25. The continuing increase in the average level of prices of goods and services over time.
Inflation
Corporation
Real GDP
Potential output
26. The time period between a policy's implementation and its desired effects on an economy.
Anchored inflation expectations
Cyclical unemployment
Outside lag
Labor productivity
27. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Sole proprietorship
Credibility of monetary policy
Pay
Capital income
28. When both producers and consumers are satisfied with their quantities at market price.
Congressional budget office
Real employment
Substitution bias
Market equilibrium
29. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Four sectors of the economy
Businesses
Participation rate
LRAS
30. The labor sector highlights the rate of ____ .
Pay
Structural policy
Inflation
Mixed market
31. The percentage of working-age people within the labor force
Invisible hand
Businesses
Participation rate
Outside lag
32. Goods that are used in the production of final goods.
Marginal benefit
Worker mobility
Labor productivity
Intermediate goods
33. A record of economic increases and decreases over time.
Keynesian model
Business cycle
Substitution bias
Velocity
34. A result of there only being one buyer of a resource input - good - or service.
AD curve intersects the SAS curve
Socially optimal quantity
Gross Domestic Product (GDP)
Monopsony
35. Most free-market banking systems are based on __________ reserves.
Inside lag
Nominal GDP
Fractional
Monopsony
36. When the people believe that the nation's central bank will keep inflation rates low.
Intangible Assets
Command economic system
Price
Credibility of monetary policy
37. The ease with which an asset can be converted to currency.
Credibility of monetary policy
Interest
Cyclical unemployment
Liquidity
38. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Capital income
Anchored inflation expectations
Recession
Reservation price
39. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Aggregate supply
Phillips curve
Labor productivity
40. When the rate of inflation is extremely high.
Lorenz curve
Core rate of inflation
Hyperinflation
Capitalism
41. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Four sectors of the economy
LRAS
Rationing
Intermediate Goods
42. The adding up of individual economic variables to obtain a large - general picture of the economy.
Labor supply
Outside lag
Law of Supply
Aggregation
43. Combines pure market and command. Example: Japan
Intermediate Goods
Free market
Mixed market
Quantity equation
44. A Scottish man (1723-1790) who is known as the father of modern economics.
Standard of living
Adam Smith
Boom
The quality adjustment bias
45. The lowest point of the recession
Marginal tax rate
Trough
Velocity
Automatic stabilizers
46. 1 percent more unemployment results in 2 percent less output.
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47. 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).
The quality adjustment bias
Relative price
Seller's surplus
Frictional unemployment
48. That efficiency leads to economic prosperity for all.
Trough
Macroeconomics
Complement
The principle of efficiency
49. Government policies aimed at stabilizing the economy by eliminating output gaps
Frictional unemployment
Keynesian economic theory
Liquidity
Stabilization policies
50. Used in the production of final goods - but instead of being consumed - are available for reuse.
Seller's reservation price
Frictional unemployment
Capital goods
Participation rate