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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. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Aggregation
Invisible hand
Automatic stabilizers
Stabilization policies
2. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Contractionary policies
Economic efficiency
Inflationary gap
3. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Capital income
Credibility of monetary policy
Intermediate goods
4. Unicorporated entity that has shared ownership.
Partnership
Monetarism
Core rate of inflation
Market equilibrium
5. A result of there only being one buyer of a resource input - good - or service.
Laffer curve
Monopsony
Inflation inertia
Gross Domestic Product (GDP)
6. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Exchange
Law of Supply
Short run equilibrium output
The real GDP per person
7. The labor sector highlights the rate of ____ .
Pay
Worker mobility
Inflation inertia
Inflation
8. 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.
Participation rate
Traditional economic system
Pay
Real employment
9. A policy that affects potential output
Phillips curve
Interest
Supply-side policy
Short run equilibrium output
10. That efficiency leads to economic prosperity for all.
Hyperinflation
Congressional budget office
The principle of efficiency
NRU
11. 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.
Indexing
Total surplus
Deflation
Gross Domestic Product (GDP)
12. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
decreases increases
Law of Supply
Disinflation
Keynesian economic theory
13. A macroeconomic policy that directly affects the structure and various institutions of an economy
Velocity
Credibility of monetary policy
Buyer's surplus
Structural policy
14. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Policy reaction function
Labor unions
Excess Supply
Labor supply
15. The real cost of changing a listed price.
Interest
LRAS
Policy reaction function
Menu cost
16. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Frictional unemployment
Seller's surplus
Outside lag
17. (n) something of value; a resource; an advantage
Substitution bias
Asset
Velocity
Inflation
18. Money multiplied by velocity equals nominal GDP.
Planned aggregate expenditure (PAE)
The Wealth Effect
Corporation
Quantity equation
19. An increase in this would cause an increase in the aggregate supply
Tangible Assets
Macroeconomics
Labor productivity
Credibility of monetary policy
20. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
The principle of efficiency
Rationing
Relative price
Structural unemployment
21. The relationship between disposable income and spending on consumable goods and services
Keynesian model
Consumption function
Core rate of inflation
Relative price
22. The goods and services sector focuses largely on the level of ______ .
Unemployment insurance
Supply-side policy
Income
Inside lag
23. 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.
Law of Supply
Rationing
Mixed market
Menu cost
24. The rise in taxes that occurs when before-tax income increases by one dollar
Capital goods
Okun's Law
Marginal tax rate
Aggregate Supply
25. The adding up of individual economic variables to obtain a large - general picture of the economy.
Business cycle
Real employment
Price level
Aggregation
26. The total value of goods and services produced in a country valued at current prices.
Consumption
Aggregate supply shock
Marginal tax rate
Nominal GDP
27. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Law of Demand
Monopsony
LRAS
Trough
28. The movement of workers between jobs - companies - and industries
Worker mobility
The rate of inflation
Keynesian economic theory
Asset
29. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Expansionary policies
Indexing
Invisible hand
Labor productivity
30. Maximum price that a customer is willing to pay for a good
Planned aggregate expenditure (PAE)
Reservation price
Free market
Average tax rate
31. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Businesses
The quality adjustment bias
Quantity equation
32. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Aggregate supply
Four sectors of the economy
Fractional
Complement
33. The time between the need for a macroeconomic policy and its implementation
AD curve intersects the SAS curve
Labor unions
Frictional unemployment
Inside lag
34. The rate of price increase on all things except food and energy
Core rate of inflation
Partnership
Tangible Assets
Stabilization policies
35. The maximum amount that an economy can output over a period of time
AD curve intersects the SAS curve
Potential output
Asset
Real employment
36. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Congressional budget office
Menu cost
The rate of inflation
37. The part of economics study that looks at the operation of a nation's economy as a whole
Quantity equation
Law of Demand
Capital income
Macroeconomics
38. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Equilibrium price
Excess Supply
Deflation
39. Payments that the government makes to unemployed workers.
Unemployment insurance
Congressional budget office
Buyer's surplus
Gross Domestic Product (GDP)
40. Combines pure market and command. Example: Japan
Consumption
Mixed market
Interest
Intermediate goods
41. Organizations that act as moderators between employers and employees
The quality adjustment bias
Labor productivity
Potential output
Labor unions
42. 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.
Peak
Structural policy
Autonomous Expenditure
Law of Demand
43. Caused by changes in the overall economy.
Cyclical unemployment
Seller's surplus
Disinflation
Equilibrium price
44. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Autonomous Expenditure
Free market
Market equilibrium
Supply-side policy
45. The international sector emphasizes the ________ rate.
Mixed market
Inflation shock
Adam Smith
Exchange
46. Most free-market banking systems are based on __________ reserves.
Fractional
The quality adjustment bias
Output gap
Structural policy
47. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Marginal benefit
decreases increases
Average tax rate
Labor unions
48. The portion of planned aggregate expenditure that is not based on output
Autonomous Expenditure
Liquidity
Economic efficiency
Marginal benefit
49. Represents the governmental tax rate that will best maximize tax revenues.
Marginal tax rate
Seller's surplus
Consumption function
Laffer curve
50. The output per employed worker
Labor productivity
Price
Output gap
Monetarism