SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. The amount of workers that are willing to work for a real wage.
Buyer's surplus
Total surplus
Labor supply
Recession
2. 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
Marginal tax rate
Asset
The real GDP per person
Real GDP
3. When the rate of inflation is extremely high.
Outside lag
Hyperinflation
Traditional economic system
Labor productivity
4. A record of economic increases and decreases over time.
Consumer Nondurables
Marginal cost
Standard of living
Business cycle
5. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
The rate of inflation
Gross National Product (GNP)
Indexing
6. The price of a good or service in relation to the price of other goods and services.
Seller's reservation price
Relative price
Structural policy
Mixed market
7. 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
Aggregation
Marginal tax rate
Short run equilibrium output
8. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Marginal benefit
Sunk cost
Liquidity
Buyer's surplus
9. Represents the governmental tax rate that will best maximize tax revenues.
Macroeconomics
Laffer curve
Structural policy
Marginal cost
10. Real Estate - Equipment - and Cash (physical assets)
Core rate of inflation
Aggregate Supply
Planned aggregate expenditure (PAE)
Tangible Assets
11. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Fisher effect
AD curve intersects the SAS curve
Gross National Product (GNP)
Policy reaction function
12. A policy that affects potential output
Marginal tax rate
Supply-side policy
Average tax rate
Consumption function
13. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
14. Total tax paid divided by total (taxable) income - as a percentage.
Peak
Monetarism
Relative price
Average tax rate
15. 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)
AD curve intersects the SAS curve
Rationing
Expansionary policies
16. That efficiency leads to economic prosperity for all.
The principle of efficiency
Four sectors of the economy
Price level
Peak
17. The degree to which people have access to goods and services that make their lives better.
Monopsony
Aggregate supply
Complement
Standard of living
18. Goods that are used in the production of final goods.
Intermediate goods
Exchange
Marginal tax rate
Keynesian economic theory
19. Total supply of goods and services in an economy
Aggregate supply
Expansionary policies
Aggregation
The rate of inflation
20. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Keynesian model
Quantity equation
Automatic stabilizers
21. 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.
Potential output
Substitution effect
Automatic stabilizers
The real GDP per person
22. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Command economic system
The quality adjustment bias
Core rate of inflation
Lorenz curve
23. The basic assumption of this model is that in the short run - firms meet demand at present price.
Inflation shock
Keynesian model
Structural unemployment
Contractionary policies
24. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Labor productivity
Complement
Price
decreases increases
25. Business entity which legally has no separate existence from its owner.
Reservation price
Deflation
Law of Diminishing Marginal Utility
Sole proprietorship
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.
Trough
Contractionary policies
Price
Seller's reservation price
27. The time period between a policy's implementation and its desired effects on an economy.
Marginal cost
Contractionary policies
Outside lag
Sunk cost
28. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Labor supply
Inflation inertia
Deflation
29. 1 percent more unemployment results in 2 percent less output.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
30. 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
Capital goods
Structural policy
Unemployment insurance
Monetarism
31. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Law of Supply
Rationing
Invisible hand
Phillips curve
32. Extreme economic growth
Boom
Exchange
Adam Smith
The rate of inflation
33. Goods and services sector - Labor sector - monetary sector - international sector.
Four sectors of the economy
Economic efficiency
Capital income
Recession
34. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Substitution effect
Aggregate supply
Menu cost
Marginal benefit
35. 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
Recession
Excess Supply
Asset
36. Goods like food and clothing that have a short lifespan.
Asset
Consumer Nondurables
Labor supply
Inflationary gap
37. The real cost of changing a listed price.
Aggregate Supply
Menu cost
Unemployment insurance
Indexing
38. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.
Price
Autonomous Expenditure
Command economic system
Structural unemployment
39. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Price
Sole proprietorship
Labor unions
decreases increases
40. Describes how the economy directly effects the actions policymakers take.
Automatic stabilizers
Policy reaction function
Labor unions
Total surplus
41. A large - unexpected change in the cost of resources.
Consumer Nondurables
Aggregate supply shock
Structural unemployment
Nominal GDP
42. The goods and services sector focuses largely on the level of ______ .
Sunk cost
Income
Reservation price
Price
43. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Adam Smith
Asset
Capital income
44. Unicorporated entity that has shared ownership.
Partnership
Intangible Assets
Monopsony
Standard of living
45. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Keynesian economic theory
Gross Domestic Product (GDP)
Liquidity
Fisher effect
46. Money multiplied by velocity equals nominal GDP.
Consumption function
Keynesian economic theory
Total surplus
Quantity equation
47. 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.
Sunk cost
Excess Supply
Real employment
Short run equilibrium output
48. The portion of planned aggregate expenditure that is not based on output
Inflation shock
Autonomous Expenditure
Real GDP
Boom
49. The rate of price increase on all things except food and energy
Aggregation
Core rate of inflation
Inflation shock
Fractional
50. When the people believe that the nation's central bank will keep inflation rates low.
The Wealth Effect
Credibility of monetary policy
Labor supply
Liquidity