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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. Business entity which legally has no separate existence from its owner.
Phillips curve
Unemployment insurance
Sole proprietorship
Price
2. The continuing increase in the average level of prices of goods and services over time.
Pay
Inflation
Asset
Recession
3. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
The real GDP per person
Participation rate
Standard of living
Mixed market
4. Caused by changes in the overall economy.
Automatic stabilizers
Real quantity
Pay
Cyclical unemployment
5. Maximum price that a customer is willing to pay for a good
Reservation price
Anchored inflation expectations
Socially optimal quantity
Consumer Nondurables
6. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Potential output
Gross National Product (GNP)
The rate of inflation
Interest
7. 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
Planned aggregate expenditure (PAE)
Worker mobility
Mixed market
Real GDP
8. 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).
Mixed market
Frictional unemployment
Price
Law of Supply
9. The maximum amount that an economy can output over a period of time
NRU
Potential output
Recession
The quality adjustment bias
10. Total supply of goods and services in an economy
Indexing
The real GDP per person
Aggregate supply
Supply-side policy
11. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Peak
Price
Aggregate demand
Seller's reservation price
12. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Mixed market
Labor supply
Average tax rate
Businesses
13. 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.
Autonomous Expenditure
Gross Domestic Product (GDP)
Capitalism
Free market
14. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Substitution effect
Aggregate supply shock
Economic efficiency
Structural unemployment
15. The adding up of individual economic variables to obtain a large - general picture of the economy.
Total surplus
Aggregation
Law of Supply
Peak
16. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Liquidity
Reservation price
Trough
17. A record of economic increases and decreases over time.
Laffer curve
Lorenz curve
Business cycle
Consumer Nondurables
18. When an economic unit makes more than it spends
Monetarism
Saving
Structural unemployment
Law of Diminishing Marginal Utility
19. Real Estate - Equipment - and Cash (physical assets)
Outside lag
Market equilibrium
Labor productivity
Tangible Assets
20. Natural Rate of Unemployment - a rate that will always exist
Standard of living
Lorenz curve
NRU
Inflationary gap
21. The basic assumption of this model is that in the short run - firms meet demand at present price.
Recession
Price level
Keynesian model
Gross Domestic Product (GDP)
22. Patents - Goodwill - and Trademarks (lack physical substance)
Total surplus
Intangible Assets
Aggregate Supply
NRU
23. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Worker mobility
Socially optimal quantity
Keynesian model
Frictional unemployment
24. Combines pure market and command. Example: Japan
Mixed market
Aggregation
Planned aggregate expenditure (PAE)
Tangible Assets
25. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Capital income
Keynesian economic theory
Quantity equation
Normative analysis
26. When the people believe that the nation's central bank will keep inflation rates low.
Consumer Nondurables
Credibility of monetary policy
Aggregate supply shock
Keynesian model
27. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Aggregate demand
Asset
Inside lag
28. The degree to which people have access to goods and services that make their lives better.
Potential output
Inside lag
Standard of living
The rate of inflation
29. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Aggregate Supply
Autonomous Expenditure
Law of Demand
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. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Law of Supply
Monopsony
AD curve intersects the SAS curve
Labor productivity
32. The difference between the price received by the seller and the seller's reservation price
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33. Most free-market banking systems are based on __________ reserves.
Consumption
Seller's surplus
Real GDP
Fractional
34. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Standard of living
Planned aggregate expenditure (PAE)
Velocity
35. The rate of price increase on all things except food and energy
Core rate of inflation
Labor unions
Autonomous Expenditure
Capital income
36. (n) something of value; a resource; an advantage
Hyperinflation
Reservation price
Asset
Policy reaction function
37. The time between the need for a macroeconomic policy and its implementation
Relative price
Inside lag
Structural unemployment
Peak
38. Goods not counted in the nation's GDP.
Marginal cost
Keynesian model
Sole proprietorship
Intermediate Goods
39. Legal entity that has received a charter from a state or federal government.
Macroeconomics
The real GDP per person
Structural unemployment
Corporation
40. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Congressional budget office
Potential output
Total surplus
Sunk cost
41. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Price level
Output gap
Inflation shock
Phillips curve
42. When the rate of inflation is extremely high.
Nominal GDP
Hyperinflation
Automatic stabilizers
NRU
43. A result of there only being one buyer of a resource input - good - or service.
Income
Pay
Partnership
Monopsony
44. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Disinflation
Capital income
Complement
Output gap
45. Government policies aimed at stabilizing the economy by eliminating output gaps
Four sectors of the economy
Labor productivity
Stabilization policies
Capital income
46. The real cost of changing a listed price.
Capitalism
decreases increases
Inflation shock
Menu cost
47. The government office that is responsible for projecting federal surpluses and deficits
Expansionary policies
Saving
Output gap
Congressional budget office
48. Payments that the government makes to unemployed workers.
Unemployment insurance
Price
Inside lag
Inflationary gap
49. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
The real GDP per person
Socially optimal quantity
Substitution effect
Output gap
50. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Trough
Monetarism
decreases increases
Aggregate Supply