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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. Legal entity that has received a charter from a state or federal government.
Stabilization policies
Income
Intermediate goods
Corporation
2. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.
Automatic stabilizers
Planned aggregate expenditure (PAE)
Adam Smith
Intermediate goods
3. 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.
Worker mobility
Frictional unemployment
Real employment
Okun's Law
4. 1 percent more unemployment results in 2 percent less output.
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5. Goods and services sector - Labor sector - monetary sector - international sector.
Capital income
Aggregate Supply
Congressional budget office
Four sectors of the economy
6. Most free-market banking systems are based on __________ reserves.
Socially optimal quantity
Peak
Consumer Nondurables
Fractional
7. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Labor productivity
Seller's reservation price
Market equilibrium
Aggregate demand
8. Goods that are used in the production of final goods.
Inflation inertia
Income
Intermediate goods
Normative analysis
9. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Interest
Economic efficiency
Macroeconomics
Sole proprietorship
10. A record of economic increases and decreases over time.
Capitalism
Sunk cost
AD curve intersects the SAS curve
Business cycle
11. The goods and services sector focuses largely on the level of ______ .
Reservation price
Partnership
Income
Congressional budget office
12. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Inflation shock
Inflation
Participation rate
13. A measure of overall price levels at a specific point in the price index.
Businesses
The Wealth Effect
Fisher effect
Price level
14. Business entity which legally has no separate existence from its owner.
Frictional unemployment
Monetarism
Gross National Product (GNP)
Sole proprietorship
15. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Disinflation
Liquidity
Reservation price
16. The total planned spending on final goods and services.
Capital income
Planned aggregate expenditure (PAE)
Complement
Pay
17. A free market system that relies on private property ownership and supply and demand
AD curve intersects the SAS curve
Labor productivity
Tangible Assets
Capitalism
18. Maximum price that a customer is willing to pay for a good
Reservation price
Automatic stabilizers
Unemployment insurance
Inside lag
19. An increase in this would cause an increase in the aggregate supply
Labor productivity
Peak
Autonomous Expenditure
Standard of living
20. The difference between the price received by the seller and the seller's reservation price
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21. That efficiency leads to economic prosperity for all.
Aggregate demand
Hyperinflation
The principle of efficiency
Deflation
22. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Substitution bias
Substitution effect
Sunk cost
Laffer curve
23. Total tax paid divided by total (taxable) income - as a percentage.
Pay
Boom
Inflation shock
Average tax rate
24. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Trough
Real employment
Reservation price
25. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.
Normative analysis
Equilibrium price
Rationing
Inflation inertia
26. Goods not counted in the nation's GDP.
Quantity equation
Consumer Nondurables
Intermediate Goods
Corporation
27. The time between the need for a macroeconomic policy and its implementation
Consumer Nondurables
Structural policy
Inside lag
Trough
28. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Supply-side policy
The principle of efficiency
Keynesian economic theory
29. When an economic unit makes more than it spends
Corporation
Inflation
Fractional
Saving
30. The ease with which an asset can be converted to currency.
Intermediate Goods
Phillips curve
Liquidity
Real quantity
31. 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).
Aggregate supply
Recession
Indexing
Frictional unemployment
32. A result of there only being one buyer of a resource input - good - or service.
Inside lag
Intermediate Goods
AD curve intersects the SAS curve
Monopsony
33. The adding up of individual economic variables to obtain a large - general picture of the economy.
Aggregation
Consumption function
Seller's reservation price
Labor supply
34. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Saving
Economic efficiency
Monetarism
Price
35. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Labor supply
Total surplus
Consumption function
Equilibrium price
36. The amount of workers that are willing to work for a real wage.
Menu cost
Labor supply
Aggregate Supply
Price
37. The annual percentage rate of change in price level reflected by price indexes
Expansionary policies
The rate of inflation
Aggregate demand
Pay
38. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Potential output
Pay
The quality adjustment bias
The rate of inflation
39. Represents the governmental tax rate that will best maximize tax revenues.
The principle of efficiency
Laffer curve
Sole proprietorship
Participation rate
40. When prices fall consistently over time - leading to negative inflation.
Deflation
Core rate of inflation
Marginal cost
Socially optimal quantity
41. The rise in taxes that occurs when before-tax income increases by one dollar
Labor productivity
Marginal tax rate
Labor unions
Keynesian model
42. 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
Contractionary policies
Interest
Planned aggregate expenditure (PAE)
43. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
LRAS
Market equilibrium
Real employment
44. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Adam Smith
The principle of efficiency
Credibility of monetary policy
45. The increase in total cost that comes from producing one additional unit of a specific good or service.
Substitution bias
Sole proprietorship
Law of Demand
Marginal cost
46. Extreme economic growth
Equilibrium price
Boom
Price level
Law of Demand
47. The total value of goods and services produced in a country valued at current prices.
Cyclical unemployment
Nominal GDP
LRAS
Consumption function
48. 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
Monetarism
Laffer curve
Phillips curve
The rate of inflation
49. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Aggregation
Labor supply
Capitalism
50. An increase in spending due to a perceived increase in wealth.
Structural policy
Economic efficiency
The Wealth Effect
Partnership