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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.
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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. That efficiency leads to economic prosperity for all.
The principle of efficiency
Intangible Assets
Rationing
Labor productivity
2. (n) something of value; a resource; an advantage
LRAS
Trough
Frictional unemployment
Asset
3. Legal entity that has received a charter from a state or federal government.
Labor productivity
Corporation
Structural policy
Inside lag
4. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
The quality adjustment bias
Free market
Saving
Economic efficiency
5. Goods that are used in the production of final goods.
Capital income
Normative analysis
Inflation shock
Intermediate goods
6. The portion of planned aggregate expenditure that is not based on output
Law of Diminishing Marginal Utility
Monetarism
Autonomous Expenditure
Four sectors of the economy
7. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Disinflation
Labor productivity
Inflation shock
Keynesian economic theory
8. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Hyperinflation
Fractional
Keynesian economic theory
Real quantity
9. The speed that money changes hands in order to buy and sell final goods and services.
Law of Diminishing Marginal Utility
Velocity
The principle of efficiency
Complement
10. A policy that affects potential output
Socially optimal quantity
Businesses
Real employment
Supply-side policy
11. Represents the governmental tax rate that will best maximize tax revenues.
Structural policy
Equilibrium price
NRU
Laffer curve
12. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Rationing
Structural unemployment
The rate of inflation
Law of Diminishing Marginal Utility
13. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Nominal GDP
Law of Diminishing Marginal Utility
Rationing
Expansionary policies
14. 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.
Automatic stabilizers
Inside lag
Corporation
The quality adjustment bias
15. Government policies intended to increase spending and output.
Excess Supply
Expansionary policies
Capital income
Price
16. 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
Fractional
Congressional budget office
Inflation shock
Monetarism
17. The degree to which people have access to goods and services that make their lives better.
Business cycle
Participation rate
Standard of living
Substitution bias
18. A measure of overall price levels at a specific point in the price index.
Potential output
Intangible Assets
Income
Price level
19. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Substitution effect
The real GDP per person
Interest
Indexing
20. The relationship between disposable income and spending on consumable goods and services
Consumption function
Corporation
decreases increases
Cyclical unemployment
21. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross National Product (GNP)
Monetarism
Anchored inflation expectations
Inflation inertia
22. Organizations that act as moderators between employers and employees
Intangible Assets
Complement
Labor unions
Income
23. Money multiplied by velocity equals nominal GDP.
Quantity equation
Labor productivity
Consumer Nondurables
Rationing
24. 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.
Disinflation
Menu cost
Consumption
Traditional economic system
25. The difference between the price received by the seller and the seller's reservation price
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26. 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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27. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Anchored inflation expectations
Aggregate supply shock
Price level
28. Total supply of goods and services in an economy
Businesses
Aggregate supply
Partnership
Monetarism
29. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Seller's surplus
Socially optimal quantity
Buyer's surplus
Participation rate
30. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Gross National Product (GNP)
Seller's surplus
Consumption
Labor productivity
31. A record of economic increases and decreases over time.
Labor supply
Seller's surplus
Fisher effect
Business cycle
32. The real cost of changing a listed price.
Traditional economic system
Menu cost
Boom
Substitution bias
33. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Law of Diminishing Marginal Utility
Output gap
Inside lag
The principle of efficiency
34. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Fisher effect
Sunk cost
Liquidity
Businesses
35. An increase in spending due to a perceived increase in wealth.
Sole proprietorship
The Wealth Effect
Disinflation
Aggregate supply
36. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Recession
Economic efficiency
Seller's reservation price
37. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Structural policy
Sole proprietorship
Average tax rate
Aggregate demand
38. 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).
Frictional unemployment
Expansionary policies
Policy reaction function
Indexing
39. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Socially optimal quantity
Trough
Core rate of inflation
40. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Complement
Marginal benefit
Business cycle
Total surplus
41. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Consumer Nondurables
Labor supply
Indexing
Command economic system
42. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Capital goods
Labor unions
Monopsony
43. 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
Saving
The principle of efficiency
Outside lag
44. The slow change in inflation from year to year in industrialized nations
Law of Supply
Socially optimal quantity
Inflation inertia
Lorenz curve
45. 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
Outside lag
Inside lag
Saving
46. 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
Four sectors of the economy
Seller's surplus
Menu cost
47. Business entity which legally has no separate existence from its owner.
Inflation shock
Potential output
Businesses
Sole proprietorship
48. The annual percentage rate of change in price level reflected by price indexes
Average tax rate
The rate of inflation
Indexing
Capital goods
49. The labor sector highlights the rate of ____ .
Exchange
Pay
Autonomous Expenditure
Price
50. A large - unexpected change in the cost of resources.
Aggregate supply shock
Capital goods
Capitalism
Expansionary policies
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