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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. The percentage of working-age people within the labor force
The quality adjustment bias
Inflation
Corporation
Participation rate
2. Unicorporated entity that has shared ownership.
Partnership
The principle of efficiency
Mixed market
Menu cost
3. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Planned aggregate expenditure (PAE)
Inflation
Substitution effect
4. There is an ___________ ___ when aggregate output is above potential output
The real GDP per person
Gross National Product (GNP)
Inflationary gap
Fisher effect
5. A quantity that is measured in real terms - the actual quantity of a good or service
Gross Domestic Product (GDP)
Automatic stabilizers
Inflation inertia
Real quantity
6. Goods that are used in the production of final goods.
Labor supply
Businesses
Total surplus
Intermediate goods
7. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
Unemployment insurance
Exchange
Gross Domestic Product (GDP)
8. 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.
Contractionary policies
Consumption
Outside lag
Core rate of inflation
9. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Phillips curve
Nominal GDP
Peak
10. An increase in spending due to a perceived increase in wealth.
Inflation shock
Participation rate
The Wealth Effect
Liquidity
11. The difference between the price received by the seller and the seller's reservation price
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12. (n) something of value; a resource; an advantage
Asset
Anchored inflation expectations
Stabilization policies
Tangible Assets
13. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Socially optimal quantity
Corporation
Command economic system
14. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Velocity
Seller's reservation price
Fractional
15. The output per employed worker
Congressional budget office
Seller's reservation price
Labor productivity
Interest
16. Represents the governmental tax rate that will best maximize tax revenues.
Macroeconomics
Short run equilibrium output
Invisible hand
Laffer curve
17. 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
Tangible Assets
Gross National Product (GNP)
Anchored inflation expectations
18. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Lorenz curve
Hyperinflation
Congressional budget office
Invisible hand
19. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Menu cost
Partnership
Disinflation
Real employment
20. 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.
Rationing
Monopsony
Law of Supply
Policy reaction function
21. The maximum amount that an economy can output over a period of time
Consumer Nondurables
Marginal cost
Structural unemployment
Potential output
22. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Sunk cost
Laffer curve
Total surplus
Fisher effect
23. 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
Monetarism
Disinflation
Marginal tax rate
Expansionary policies
24. The basic assumption of this model is that in the short run - firms meet demand at present price.
Seller's surplus
Labor unions
Trough
Keynesian model
25. 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.
The real GDP per person
Fractional
Law of Diminishing Marginal Utility
Marginal tax rate
26. The goods and services sector focuses largely on the level of ______ .
Planned aggregate expenditure (PAE)
Peak
Complement
Income
27. Patents - Goodwill - and Trademarks (lack physical substance)
Equilibrium price
Keynesian economic theory
Intangible Assets
Economic efficiency
28. 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.
Traditional economic system
Complement
Labor productivity
Four sectors of the economy
29. The total planned spending on final goods and services.
Saving
Cyclical unemployment
Planned aggregate expenditure (PAE)
Fractional
30. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Command economic system
Congressional budget office
Partnership
31. The real cost of changing a listed price.
Intermediate Goods
Consumption function
Capital goods
Menu cost
32. The continuing increase in the average level of prices of goods and services over time.
Invisible hand
Inflation
Market equilibrium
Exchange
33. The time between the need for a macroeconomic policy and its implementation
Potential output
Normative analysis
Inside lag
Partnership
34. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Inflation
Capitalism
Aggregate demand
Intermediate Goods
35. The price of a good or service in relation to the price of other goods and services.
Relative price
Fisher effect
Real quantity
Trough
36. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Cyclical unemployment
Laffer curve
Relative price
37. Payments that the government makes to unemployed workers.
Adam Smith
Business cycle
Unemployment insurance
Intangible Assets
38. Combines pure market and command. Example: Japan
Free market
Mixed market
Output gap
AD curve intersects the SAS curve
39. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Disinflation
Inside lag
Consumption function
40. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Average tax rate
Quantity equation
Unemployment insurance
41. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Hyperinflation
Output gap
Cyclical unemployment
Aggregate Supply
42. A result of there only being one buyer of a resource input - good - or service.
Autonomous Expenditure
Sunk cost
Buyer's surplus
Monopsony
43. A measure of overall price levels at a specific point in the price index.
Deflation
Labor unions
Price level
Seller's surplus
44. When the rate of inflation is extremely high.
Short run equilibrium output
Intangible Assets
Hyperinflation
Command economic system
45. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Recession
Credibility of monetary policy
Phillips curve
Marginal benefit
46. The ease with which an asset can be converted to currency.
Unemployment insurance
Core rate of inflation
Liquidity
Labor productivity
47. Money multiplied by velocity equals nominal GDP.
Quantity equation
Autonomous Expenditure
Okun's Law
Market equilibrium
48. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Congressional budget office
The real GDP per person
Gross National Product (GNP)
Socially optimal quantity
49. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Congressional budget office
Credibility of monetary policy
Indexing
Economic efficiency
50. The speed that money changes hands in order to buy and sell final goods and services.
Command economic system
Four sectors of the economy
Aggregation
Velocity