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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. The percentage of working-age people within the labor force
Income
Participation rate
decreases increases
The real GDP per person
2. Payments that the government makes to unemployed workers.
Inflationary gap
Unemployment insurance
Businesses
Law of Demand
3. When an economic unit makes more than it spends
Invisible hand
decreases increases
Saving
Congressional budget office
4. The amount of workers that are willing to work for a real wage.
Worker mobility
Total surplus
Free market
Labor supply
5. The adding up of individual economic variables to obtain a large - general picture of the economy.
Sole proprietorship
Buyer's surplus
Aggregation
Fisher effect
6. The real cost of changing a listed price.
Menu cost
Velocity
Seller's reservation price
Partnership
7. The annual percentage rate of change in price level reflected by price indexes
Anchored inflation expectations
Recession
Aggregate supply
The rate of inflation
8. 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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9. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Indexing
The real GDP per person
Socially optimal quantity
Mixed market
10. The beginning of a recession
Real GDP
Tangible Assets
Peak
Boom
11. The output per employed worker
Phillips curve
Labor productivity
The Wealth Effect
Fractional
12. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Mixed market
Labor productivity
Substitution effect
Invisible hand
13. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Macroeconomics
Trough
Intermediate Goods
Disinflation
14. A record of economic increases and decreases over time.
Buyer's surplus
Intermediate Goods
Business cycle
Seller's reservation price
15. The movement of workers between jobs - companies - and industries
Hyperinflation
Worker mobility
Command economic system
Disinflation
16. The ease with which an asset can be converted to currency.
Labor productivity
Free market
Laffer curve
Liquidity
17. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Gross Domestic Product (GDP)
Price
The quality adjustment bias
18. 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.
NRU
Frictional unemployment
Law of Supply
The real GDP per person
19. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Outside lag
Automatic stabilizers
Hyperinflation
20. The monetary sector focuses on the ________ rate.
Mixed market
Interest
Menu cost
Business cycle
21. Extreme economic growth
Sole proprietorship
Boom
Income
Standard of living
22. 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
Indexing
Partnership
Output gap
Monetarism
23. Caused by changes in the overall economy.
Intermediate Goods
Complement
Labor productivity
Cyclical unemployment
24. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
The rate of inflation
Substitution bias
Economic efficiency
Rationing
25. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Gross Domestic Product (GDP)
LRAS
AD curve intersects the SAS curve
Labor productivity
26. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Buyer's surplus
Marginal cost
Complement
Rationing
27. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Marginal cost
Substitution bias
Excess Supply
28. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Stabilization policies
Gross National Product (GNP)
Disinflation
29. An increase in this would cause an increase in the aggregate supply
Normative analysis
Policy reaction function
Labor productivity
Boom
30. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Consumption
Keynesian economic theory
Aggregate demand
Lorenz curve
31. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Capital goods
Nominal GDP
Core rate of inflation
32. A result of there only being one buyer of a resource input - good - or service.
Autonomous Expenditure
Monopsony
Credibility of monetary policy
Sole proprietorship
33. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases
Equilibrium price
Policy reaction function
Substitution bias
Labor productivity
34. The total planned spending on final goods and services.
Lorenz curve
Autonomous Expenditure
Real quantity
Planned aggregate expenditure (PAE)
35. The relationship between disposable income and spending on consumable goods and services
Output gap
Anchored inflation expectations
Frictional unemployment
Consumption function
36. A Scottish man (1723-1790) who is known as the father of modern economics.
Autonomous Expenditure
Economic efficiency
Command economic system
Adam Smith
37. Patents - Goodwill - and Trademarks (lack physical substance)
Command economic system
Intangible Assets
Inflationary gap
Fisher effect
38. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Real quantity
Macroeconomics
The real GDP per person
Laffer curve
39. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Economic efficiency
Sole proprietorship
Output gap
Outside lag
40. Unicorporated entity that has shared ownership.
Real quantity
Gross National Product (GNP)
Complement
Partnership
41. When prices fall consistently over time - leading to negative inflation.
Sole proprietorship
Complement
Deflation
Saving
42. Organizations that act as moderators between employers and employees
Labor supply
Market equilibrium
Macroeconomics
Labor unions
43. 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)
The real GDP per person
Inflationary gap
Keynesian model
44. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Invisible hand
Phillips curve
Price
Total surplus
45. 1 percent more unemployment results in 2 percent less output.
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46. The government office that is responsible for projecting federal surpluses and deficits
Structural policy
Total surplus
Congressional budget office
Standard of living
47. 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.
Saving
Price level
Potential output
Real employment
48. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Monetarism
Market equilibrium
Macroeconomics
49. Most free-market banking systems are based on __________ reserves.
Cyclical unemployment
Businesses
Fractional
Equilibrium price
50. A macroeconomic policy that directly affects the structure and various institutions of an economy
Aggregate supply shock
Structural policy
Labor supply
Policy reaction function