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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. 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.
Labor productivity
Pay
The real GDP per person
Law of Diminishing Marginal Utility
2. Organizations that act as moderators between employers and employees
Pay
Tangible Assets
Labor unions
Seller's surplus
3. Goods not counted in the nation's GDP.
Income
Intermediate Goods
Reservation price
Free market
4. Unicorporated entity that has shared ownership.
Worker mobility
Partnership
Velocity
Planned aggregate expenditure (PAE)
5. 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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6. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Price
Intermediate Goods
Participation rate
7. The ease with which an asset can be converted to currency.
Business cycle
Liquidity
Adam Smith
The quality adjustment bias
8. Money multiplied by velocity equals nominal GDP.
The rate of inflation
Tangible Assets
Labor unions
Quantity equation
9. Natural Rate of Unemployment - a rate that will always exist
NRU
Relative price
Labor supply
Traditional economic system
10. The total planned spending on final goods and services.
Aggregate supply shock
Deflation
The real GDP per person
Planned aggregate expenditure (PAE)
11. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Disinflation
LRAS
Real quantity
Socially optimal quantity
12. The continuing increase in the average level of prices of goods and services over time.
Gross National Product (GNP)
Labor unions
Recession
Inflation
13. The difference between the price received by the seller and the seller's reservation price
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14. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Potential output
Aggregate supply
Capital income
15. The increase in total cost that comes from producing one additional unit of a specific good or service.
Inflation shock
Marginal cost
Credibility of monetary policy
Socially optimal quantity
16. 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.
Trough
Law of Demand
Structural policy
Outside lag
17. The time between the need for a macroeconomic policy and its implementation
Participation rate
Anchored inflation expectations
AD curve intersects the SAS curve
Inside lag
18. The relationship between disposable income and spending on consumable goods and services
Boom
Planned aggregate expenditure (PAE)
Cyclical unemployment
Consumption function
19. The real cost of changing a listed price.
Recession
Monopsony
Menu cost
Stabilization policies
20. A policy that affects potential output
Partnership
Market equilibrium
Supply-side policy
Aggregate supply shock
21. 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.
Traditional economic system
Pay
Substitution effect
Real employment
22. The increase in total benefit that comes from producing one additional unit.
Invisible hand
Cyclical unemployment
Corporation
Marginal benefit
23. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Monetarism
Laffer curve
Complement
Law of Diminishing Marginal Utility
24. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Marginal cost
Complement
Economic efficiency
Inflation
25. Represents the governmental tax rate that will best maximize tax revenues.
Contractionary policies
Laffer curve
Policy reaction function
Intermediate Goods
26. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Buyer's surplus
Unemployment insurance
decreases increases
Traditional economic system
27. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Standard of living
Rationing
Fractional
28. The part of economics study that looks at the operation of a nation's economy as a whole
Adam Smith
Substitution bias
Free market
Macroeconomics
29. A Scottish man (1723-1790) who is known as the father of modern economics.
Hyperinflation
Partnership
Adam Smith
Liquidity
30. The monetary sector focuses on the ________ rate.
Interest
The real GDP per person
Rationing
Aggregate supply shock
31. Maximum price that a customer is willing to pay for a good
Reservation price
Aggregate Supply
The real GDP per person
Socially optimal quantity
32. A record of economic increases and decreases over time.
Indexing
Pay
Sole proprietorship
Business cycle
33. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Marginal cost
Fractional
Structural unemployment
Unemployment insurance
34. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Substitution bias
Recession
Mixed market
35. The percentage of working-age people within the labor force
Participation rate
Asset
Economic efficiency
Tangible Assets
36. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Fractional
Keynesian economic theory
Normative analysis
Automatic stabilizers
37. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Business cycle
Four sectors of the economy
Keynesian economic theory
Capital income
38. 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.
Equilibrium price
Keynesian model
Disinflation
Anchored inflation expectations
39. 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
Real quantity
Monetarism
Sole proprietorship
Velocity
40. The output per employed worker
Labor productivity
Substitution bias
Law of Supply
Lorenz curve
41. When people's expectations of future inflation do not change even though inflation rates change.
The rate of inflation
Consumption function
Velocity
Anchored inflation expectations
42. The total value of goods and services produced in a country valued at current prices.
Rationing
Invisible hand
Nominal GDP
Tangible Assets
43. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.
Hyperinflation
Monetarism
Traditional economic system
Participation rate
44. Government policies intended to increase spending and output.
Invisible hand
Expansionary policies
Disinflation
Velocity
45. The level of output where output equals planned aggregate expenditure
Aggregate demand
Normative analysis
Rationing
Short run equilibrium output
46. The movement of workers between jobs - companies - and industries
Worker mobility
Velocity
Business cycle
Quantity equation
47. The time period between a policy's implementation and its desired effects on an economy.
Marginal cost
Partnership
Outside lag
Policy reaction function
48. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
The rate of inflation
Fisher effect
Free market
LRAS
49. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Structural policy
Income
Law of Supply
Consumption
50. 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.
Gross Domestic Product (GDP)
Traditional economic system
Intangible Assets
Average tax rate