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Test your basic knowledge |
CLEP Macroeconomics - 3
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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 increase in total benefit that comes from producing one additional unit.
Marginal benefit
Aggregate supply shock
Complement
Trough
2. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Price
Phillips curve
Inflation inertia
Marginal tax rate
3. Patents - Goodwill - and Trademarks (lack physical substance)
Sunk cost
Invisible hand
Intangible Assets
Law of Supply
4. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Participation rate
Labor productivity
Marginal tax rate
Price
5. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Inside lag
Law of Demand
Complement
Economic efficiency
6. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
The quality adjustment bias
Average tax rate
Menu cost
Gross National Product (GNP)
7. The percentage of working-age people within the labor force
LRAS
Exchange
Participation rate
Monopsony
8. The amount of workers that are willing to work for a real wage.
Average tax rate
Labor supply
Asset
Contractionary policies
9. Government policies intended to increase spending and output.
Seller's reservation price
AD curve intersects the SAS curve
Expansionary policies
Marginal benefit
10. The government office that is responsible for projecting federal surpluses and deficits
The quality adjustment bias
Congressional budget office
Seller's reservation price
Monetarism
11. Maximum price that a customer is willing to pay for a good
Fractional
Peak
Reservation price
Real employment
12. The level of output where output equals planned aggregate expenditure
Invisible hand
Keynesian economic theory
Short run equilibrium output
Asset
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
Substitution bias
Real GDP
Inflation shock
Exchange
14. Total supply of goods and services in an economy
Excess Supply
Law of Demand
Aggregate supply
Inflationary gap
15. The international sector emphasizes the ________ rate.
Command economic system
The rate of inflation
Exchange
Unemployment insurance
16. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Credibility of monetary policy
Anchored inflation expectations
Price
17. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Aggregation
Policy reaction function
Consumer Nondurables
18. Represents the governmental tax rate that will best maximize tax revenues.
Liquidity
Labor unions
Laffer curve
Velocity
19. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Four sectors of the economy
Peak
Invisible hand
Boom
20. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Marginal benefit
Intermediate Goods
LRAS
21. The total value of goods and services produced in a country valued at current prices.
Policy reaction function
Expansionary policies
Phillips curve
Nominal GDP
22. Caused by changes in the overall economy.
Cyclical unemployment
Boom
Total surplus
AD curve intersects the SAS curve
23. The speed that money changes hands in order to buy and sell final goods and services.
Marginal benefit
Velocity
Fractional
Exchange
24. A result of there only being one buyer of a resource input - good - or service.
Consumption function
Keynesian economic theory
Monopsony
Aggregate supply
25. 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).
Intangible Assets
Indexing
Exchange
Frictional unemployment
26. 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.
Structural policy
Lorenz curve
Boom
Contractionary policies
27. The rate of price increase on all things except food and energy
Core rate of inflation
Rationing
Seller's reservation price
Consumer Nondurables
28. 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
LRAS
Real GDP
Worker mobility
29. The basic assumption of this model is that in the short run - firms meet demand at present price.
The principle of efficiency
Boom
Keynesian model
Intangible Assets
30. The total planned spending on final goods and services.
Excess Supply
Planned aggregate expenditure (PAE)
Capitalism
Labor unions
31. A large - unexpected change in the cost of resources.
Stabilization policies
Intermediate Goods
Unemployment insurance
Aggregate supply shock
32. The continuing increase in the average level of prices of goods and services over time.
Inflation
Fisher effect
Nominal GDP
Buyer's surplus
33. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Saving
Aggregate demand
Keynesian model
Unemployment insurance
34. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
The real GDP per person
Average tax rate
Consumption
Real GDP
35. 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.
Real employment
Market equilibrium
Keynesian economic theory
Autonomous Expenditure
36. The time between the need for a macroeconomic policy and its implementation
Core rate of inflation
Congressional budget office
Inside lag
Quantity equation
37. That efficiency leads to economic prosperity for all.
The principle of efficiency
Indexing
Gross Domestic Product (GDP)
Capital goods
38. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
decreases increases
Businesses
Aggregation
39. The goods and services sector focuses largely on the level of ______ .
Income
Disinflation
Corporation
Macroeconomics
40. 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
Free market
Saving
Monetarism
The principle of efficiency
41. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Interest
Marginal tax rate
NRU
Excess Supply
42. Unicorporated entity that has shared ownership.
Market equilibrium
Aggregate Supply
Consumption function
Partnership
43. The adding up of individual economic variables to obtain a large - general picture of the economy.
Invisible hand
Aggregation
Sunk cost
Labor productivity
44. An increase in spending due to a perceived increase in wealth.
Law of Demand
Credibility of monetary policy
Output gap
The Wealth Effect
45. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Aggregate supply
The real GDP per person
Anchored inflation expectations
Law of Demand
46. The output per employed worker
Phillips curve
Traditional economic system
Businesses
Labor productivity
47. When the people believe that the nation's central bank will keep inflation rates low.
Aggregate demand
Credibility of monetary policy
Macroeconomics
The rate of inflation
48. Government policies aimed at stabilizing the economy by eliminating output gaps
Structural policy
Inflationary gap
Capital income
Stabilization policies
49. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Unemployment insurance
Cyclical unemployment
Law of Diminishing Marginal Utility
50. The relationship between disposable income and spending on consumable goods and services
Consumer Nondurables
Stabilization policies
Capitalism
Consumption function