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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. Used in the production of final goods - but instead of being consumed - are available for reuse.
Consumption
Inflation inertia
Capital goods
Equilibrium price
2. A record of economic increases and decreases over time.
Income
Short run equilibrium output
Worker mobility
Business cycle
3. Government policies intended to increase spending and output.
Laffer curve
Seller's surplus
Expansionary policies
Marginal benefit
4. When the rate of inflation is extremely high.
Law of Demand
Standard of living
Hyperinflation
Keynesian model
5. When an economic unit makes more than it spends
Hyperinflation
Saving
Inflation
Adam Smith
6. 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.
Law of Supply
Traditional economic system
Structural unemployment
Stabilization policies
7. A measure of overall price levels at a specific point in the price index.
The principle of efficiency
Macroeconomics
Price level
Exchange
8. That efficiency leads to economic prosperity for all.
The principle of efficiency
Business cycle
Structural unemployment
Tangible Assets
9. The increase in total benefit that comes from producing one additional unit.
Disinflation
Buyer's surplus
Free market
Marginal benefit
10. Legal entity that has received a charter from a state or federal government.
Peak
Autonomous Expenditure
Labor supply
Corporation
11. Business entity which legally has no separate existence from its owner.
Sole proprietorship
Capital income
Saving
Command economic system
12. Maximum price that a customer is willing to pay for a good
Real quantity
Reservation price
Aggregate demand
Seller's surplus
13. Unicorporated entity that has shared ownership.
Inflation
Four sectors of the economy
Excess Supply
Partnership
14. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Labor supply
Equilibrium price
Aggregate demand
Aggregate supply shock
15. A free market system that relies on private property ownership and supply and demand
Capitalism
Core rate of inflation
Aggregate demand
Sole proprietorship
16. 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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17. The slow change in inflation from year to year in industrialized nations
Tangible Assets
Stabilization policies
Four sectors of the economy
Inflation inertia
18. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Sole proprietorship
Average tax rate
Substitution effect
Law of Supply
19. 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.
Aggregate supply shock
Inflation shock
Income
Law of Demand
20. The continuing increase in the average level of prices of goods and services over time.
Participation rate
Inflation
Deflation
Consumer Nondurables
21. 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
Macroeconomics
Complement
Keynesian model
22. 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
Liquidity
Pay
Real GDP
Monopsony
23. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Rationing
Keynesian model
Free market
Price level
24. A policy that affects potential output
Business cycle
Gross National Product (GNP)
Seller's surplus
Supply-side policy
25. A Scottish man (1723-1790) who is known as the father of modern economics.
Liquidity
Lorenz curve
Consumer Nondurables
Adam Smith
26. 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
Substitution bias
Standard of living
Reservation price
27. Goods like food and clothing that have a short lifespan.
Economic efficiency
Complement
Consumer Nondurables
Intermediate Goods
28. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Cyclical unemployment
Gross National Product (GNP)
Keynesian economic theory
Peak
29. 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
Substitution effect
Monetarism
Recession
Pay
30. Payments that the government makes to unemployed workers.
Consumption function
Marginal cost
Output gap
Unemployment insurance
31. The speed that money changes hands in order to buy and sell final goods and services.
Substitution bias
Labor productivity
Quantity equation
Velocity
32. The monetary sector focuses on the ________ rate.
Standard of living
Interest
Mixed market
Corporation
33. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Aggregate Supply
Okun's Law
Unemployment insurance
Total surplus
34. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Sunk cost
Disinflation
Standard of living
Liquidity
35. The percentage of working-age people within the labor force
Unemployment insurance
Relative price
Participation rate
Frictional unemployment
36. A large - unexpected change in the cost of resources.
LRAS
Aggregation
Law of Diminishing Marginal Utility
Aggregate supply shock
37. 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.
Anchored inflation expectations
Equilibrium price
Labor supply
Adam Smith
38. The level of output where output equals planned aggregate expenditure
Aggregate supply
decreases increases
Short run equilibrium output
Relative price
39. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Menu cost
Total surplus
Aggregate Supply
Market equilibrium
40. The adding up of individual economic variables to obtain a large - general picture of the economy.
Anchored inflation expectations
Aggregation
Free market
Consumer Nondurables
41. The part of economics study that looks at the operation of a nation's economy as a whole
Aggregate supply
Labor supply
Macroeconomics
Aggregation
42. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Complement
Quantity equation
Capital goods
Velocity
43. Caused by changes in the overall economy.
Aggregation
Cyclical unemployment
Structural unemployment
The quality adjustment bias
44. The basic assumption of this model is that in the short run - firms meet demand at present price.
Inflationary gap
Fisher effect
Total surplus
Keynesian model
45. The ease with which an asset can be converted to currency.
Substitution bias
Nominal GDP
Tangible Assets
Liquidity
46. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases
Liquidity
The rate of inflation
Substitution bias
Frictional unemployment
47. The degree to which people have access to goods and services that make their lives better.
Income
Standard of living
Inflationary gap
Unemployment insurance
48. When both producers and consumers are satisfied with their quantities at market price.
Standard of living
Excess Supply
Market equilibrium
Boom
49. The difference between the price received by the seller and the seller's reservation price
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50. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Law of Demand
Output gap
Stabilization policies
Inflation shock