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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. Goods and services sector - Labor sector - monetary sector - international sector.
Intermediate goods
Consumer Nondurables
Four sectors of the economy
Income
2. Goods that are used in the production of final goods.
Intermediate goods
Phillips curve
Frictional unemployment
Saving
3. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
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4. 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.
Free market
Exchange
Deflation
Law of Demand
5. When the rate of inflation is extremely high.
Indexing
Saving
Complement
Hyperinflation
6. The rate of price increase on all things except food and energy
Aggregate supply shock
Core rate of inflation
Contractionary policies
Planned aggregate expenditure (PAE)
7. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal benefit
Cyclical unemployment
Marginal tax rate
Phillips curve
8. 1 percent more unemployment results in 2 percent less output.
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9. That efficiency leads to economic prosperity for all.
The principle of efficiency
Inside lag
Excess Supply
Deflation
10. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Velocity
Labor supply
The quality adjustment bias
Substitution effect
11. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Monopsony
Lorenz curve
Liquidity
Recession
12. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Nominal GDP
Consumption
Sunk cost
Real GDP
13. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Businesses
Output gap
Unemployment insurance
Normative analysis
14. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Complement
Total surplus
Policy reaction function
Aggregate Supply
15. An increase in spending due to a perceived increase in wealth.
The Wealth Effect
Substitution effect
Aggregate demand
Liquidity
16. The goods and services sector focuses largely on the level of ______ .
Equilibrium price
Income
Economic efficiency
Business cycle
17. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Menu cost
Participation rate
The principle of efficiency
18. Payments that the government makes to unemployed workers.
Recession
Capital income
Law of Supply
Unemployment insurance
19. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Automatic stabilizers
AD curve intersects the SAS curve
Keynesian model
Command economic system
20. 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
Reservation price
Seller's reservation price
Market equilibrium
21. 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.
Total surplus
Trough
Aggregation
Law of Diminishing Marginal Utility
22. A record of economic increases and decreases over time.
Business cycle
Structural unemployment
Invisible hand
Rationing
23. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Capital income
Consumption function
Aggregate Supply
Velocity
24. Extreme economic growth
Keynesian economic theory
Mixed market
Price level
Boom
25. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Capitalism
Intermediate Goods
The Wealth Effect
26. The portion of planned aggregate expenditure that is not based on output
Real employment
Inflation shock
Keynesian economic theory
Autonomous Expenditure
27. The monetary sector focuses on the ________ rate.
Four sectors of the economy
Labor unions
Interest
Normative analysis
28. Legal entity that has received a charter from a state or federal government.
Corporation
Buyer's surplus
Real quantity
Aggregate supply
29. The speed that money changes hands in order to buy and sell final goods and services.
Deflation
Aggregate demand
Velocity
Seller's surplus
30. (n) something of value; a resource; an advantage
Worker mobility
Policy reaction function
Asset
Labor productivity
31. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Inflation inertia
Participation rate
Income
Businesses
32. The time period between a policy's implementation and its desired effects on an economy.
Substitution effect
Aggregate demand
Outside lag
Recession
33. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Capital income
Asset
decreases increases
Participation rate
34. The total value of goods and services produced in a country valued at current prices.
Equilibrium price
Nominal GDP
Keynesian model
The principle of efficiency
35. Combines pure market and command. Example: Japan
Keynesian economic theory
Invisible hand
Substitution bias
Mixed market
36. 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
Real GDP
Gross Domestic Product (GDP)
Congressional budget office
Marginal benefit
37. The adding up of individual economic variables to obtain a large - general picture of the economy.
Aggregate demand
Structural policy
Aggregation
Capital goods
38. Total supply of goods and services in an economy
Peak
Phillips curve
Aggregate supply
Fisher effect
39. A result of there only being one buyer of a resource input - good - or service.
The rate of inflation
Monopsony
Aggregate supply shock
Buyer's surplus
40. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Aggregate supply
Anchored inflation expectations
Sole proprietorship
41. A large - unexpected change in the cost of resources.
Aggregate supply shock
Buyer's surplus
Normative analysis
Exchange
42. Used to demonstrate shifts in income distribution among a population over time.
Congressional budget office
Aggregate supply
Recession
Lorenz curve
43. The difference between the price received by the seller and the seller's reservation price
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44. When the people believe that the nation's central bank will keep inflation rates low.
Monopsony
Credibility of monetary policy
Aggregate supply
Corporation
45. The government office that is responsible for projecting federal surpluses and deficits
Consumption
Congressional budget office
Seller's reservation price
Inflation shock
46. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Law of Supply
Nominal GDP
Capital income
Inflation inertia
47. Maximum price that a customer is willing to pay for a good
Marginal benefit
Laffer curve
Disinflation
Reservation price
48. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Consumption function
Socially optimal quantity
Expansionary policies
Frictional unemployment
49. When inflation suddenly deviates from its normal course.
Inflation shock
Deflation
decreases increases
Business cycle
50. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Saving
Law of Demand
The Wealth Effect
Phillips curve