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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. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Buyer's surplus
Policy reaction function
Excess Supply
Planned aggregate expenditure (PAE)
2. The time period between a policy's implementation and its desired effects on an economy.
Core rate of inflation
Cyclical unemployment
Outside lag
Policy reaction function
3. Patents - Goodwill - and Trademarks (lack physical substance)
Core rate of inflation
Consumption function
Intangible Assets
Potential output
4. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Total surplus
Recession
Traditional economic system
Corporation
5. A quantity that is measured in real terms - the actual quantity of a good or service
Buyer's surplus
Aggregation
Seller's surplus
Real quantity
6. The goods and services sector focuses largely on the level of ______ .
Planned aggregate expenditure (PAE)
Four sectors of the economy
Complement
Income
7. Goods like food and clothing that have a short lifespan.
Worker mobility
Relative price
Total surplus
Consumer Nondurables
8. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Aggregate supply shock
Supply-side policy
Frictional unemployment
9. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Policy reaction function
Participation rate
Disinflation
Consumer Nondurables
10. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Quantity equation
Aggregate supply
Saving
11. (n) something of value; a resource; an advantage
Asset
Marginal cost
Free market
The principle of efficiency
12. The real cost of changing a listed price.
Liquidity
Menu cost
Average tax rate
Relative price
13. Government policies aimed at stabilizing the economy by eliminating output gaps
Law of Diminishing Marginal Utility
Stabilization policies
Output gap
LRAS
14. The rise in taxes that occurs when before-tax income increases by one dollar
Outside lag
Core rate of inflation
Marginal tax rate
Supply-side policy
15. 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.
Law of Demand
Indexing
Intermediate Goods
Aggregate Supply
16. Caused by changes in the overall economy.
Law of Demand
Peak
Cyclical unemployment
Capital income
17. 1 percent more unemployment results in 2 percent less output.
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18. Organizations that act as moderators between employers and employees
Boom
Labor unions
Capitalism
Structural unemployment
19. 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.
Intermediate goods
Hyperinflation
Law of Supply
Lorenz curve
20. Used to demonstrate shifts in income distribution among a population over time.
Keynesian model
Income
Lorenz curve
Inside lag
21. Payments that the government makes to unemployed workers.
Liquidity
Unemployment insurance
Normative analysis
Core rate of inflation
22. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Liquidity
Marginal tax rate
Total surplus
Substitution bias
23. When the rate of inflation is extremely high.
Quantity equation
Aggregate demand
Macroeconomics
Hyperinflation
24. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Price
Law of Demand
Keynesian model
Capital income
25. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Free market
Deflation
Marginal cost
Aggregate demand
26. Total supply of goods and services in an economy
Inside lag
Recession
Aggregate supply
Complement
27. Goods that are used in the production of final goods.
Economic efficiency
Intermediate goods
Income
Cyclical unemployment
28. The price of a good or service in relation to the price of other goods and services.
Price level
Short run equilibrium output
Inflationary gap
Relative price
29. 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
Four sectors of the economy
Disinflation
Real GDP
Command economic system
30. 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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31. 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
Inside lag
Contractionary policies
Okun's Law
32. The increase in total benefit that comes from producing one additional unit.
Structural unemployment
Unemployment insurance
Aggregate supply shock
Marginal benefit
33. Maximum price that a customer is willing to pay for a good
Free market
Consumption function
Disinflation
Reservation price
34. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Short run equilibrium output
Income
Laffer curve
35. Total tax paid divided by total (taxable) income - as a percentage.
Marginal benefit
Phillips curve
Average tax rate
Free market
36. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Law of Supply
Seller's reservation price
NRU
decreases increases
37. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Consumer Nondurables
Substitution effect
Trough
Intermediate Goods
38. Government policies intended to increase spending and output.
Tangible Assets
The Wealth Effect
Expansionary policies
Seller's surplus
39. Represents the governmental tax rate that will best maximize tax revenues.
Exchange
Inflationary gap
Core rate of inflation
Laffer curve
40. The movement of workers between jobs - companies - and industries
Mixed market
The principle of efficiency
Nominal GDP
Worker mobility
41. When both producers and consumers are satisfied with their quantities at market price.
Adam Smith
Total surplus
Market equilibrium
Short run equilibrium output
42. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.
Congressional budget office
Labor supply
Contractionary policies
Equilibrium price
43. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
Policy reaction function
Disinflation
Inflationary gap
44. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Pay
Gross National Product (GNP)
Consumption
Law of Demand
45. The difference between the price received by the seller and the seller's reservation price
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46. Concerned with analyzing whether or not a policy should be used.
Interest
Hyperinflation
Aggregate Supply
Normative analysis
47. The continuing increase in the average level of prices of goods and services over time.
The Wealth Effect
Consumption function
Inflation
Pay
48. The international sector emphasizes the ________ rate.
NRU
Intermediate Goods
Exchange
Phillips curve
49. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Rationing
Complement
Aggregate Supply
Pay
50. The output per employed worker
Corporation
Law of Demand
Labor productivity
Total surplus