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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. That efficiency leads to economic prosperity for all.
Peak
The principle of efficiency
Four sectors of the economy
Substitution effect
2. Unicorporated entity that has shared ownership.
Real employment
Partnership
Lorenz curve
Exchange
3. The difference between the price received by the seller and the seller's reservation price
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4. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Deflation
Seller's reservation price
Inflation shock
5. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Aggregation
Automatic stabilizers
Law of Demand
6. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Adam Smith
NRU
Aggregate demand
7. The government office that is responsible for projecting federal surpluses and deficits
Congressional budget office
Pay
Average tax rate
Short run equilibrium output
8. 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
Consumer Nondurables
Seller's surplus
Monetarism
Consumption function
9. Business entity which legally has no separate existence from its owner.
Contractionary policies
Free market
Sole proprietorship
Core rate of inflation
10. When inflation suddenly deviates from its normal course.
Inflation shock
Short run equilibrium output
Expansionary policies
Structural policy
11. The maximum amount that an economy can output over a period of time
Structural unemployment
Potential output
Aggregate supply
Planned aggregate expenditure (PAE)
12. The rate of price increase on all things except food and energy
Mixed market
Interest
Fisher effect
Core rate of inflation
13. Describes how the economy directly effects the actions policymakers take.
Phillips curve
Structural policy
Economic efficiency
Policy reaction function
14. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Contractionary policies
AD curve intersects the SAS curve
Aggregate Supply
Free market
15. The lowest point of the recession
Seller's surplus
Intermediate Goods
Pay
Trough
16. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Intangible Assets
Inflationary gap
Sunk cost
Socially optimal quantity
17. When the rate of inflation is extremely high.
The Wealth Effect
Seller's reservation price
Hyperinflation
Intermediate goods
18. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Hyperinflation
Fisher effect
Inflationary gap
Price
19. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Gross National Product (GNP)
Sole proprietorship
Consumption
20. A result of there only being one buyer of a resource input - good - or service.
Total surplus
Substitution bias
Labor productivity
Monopsony
21. The goods and services sector focuses largely on the level of ______ .
Partnership
Gross National Product (GNP)
Income
The Wealth Effect
22. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.
The principle of efficiency
NRU
Command economic system
Invisible hand
23. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.
Four sectors of the economy
Equilibrium price
Reservation price
Intermediate Goods
24. Goods like food and clothing that have a short lifespan.
Outside lag
Inflation
Consumption function
Consumer Nondurables
25. The portion of planned aggregate expenditure that is not based on output
Income
Autonomous Expenditure
Peak
Total surplus
26. When both producers and consumers are satisfied with their quantities at market price.
Normative analysis
Market equilibrium
Invisible hand
Boom
27. The part of economics study that looks at the operation of a nation's economy as a whole
decreases increases
Pay
Law of Supply
Macroeconomics
28. The adding up of individual economic variables to obtain a large - general picture of the economy.
Aggregation
Indexing
The principle of efficiency
Inflation
29. Goods that are used in the production of final goods.
Boom
Lorenz curve
Capitalism
Intermediate goods
30. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Total surplus
The real GDP per person
Market equilibrium
31. The increase in total benefit that comes from producing one additional unit.
Velocity
Okun's Law
Marginal benefit
Phillips curve
32. The real cost of changing a listed price.
Equilibrium price
Economic efficiency
Monopsony
Menu cost
33. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Normative analysis
Substitution bias
Buyer's surplus
The quality adjustment bias
34. Maximum price that a customer is willing to pay for a good
Saving
Intermediate goods
Output gap
Reservation price
35. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Anchored inflation expectations
Total surplus
Price level
Aggregate Supply
36. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Structural policy
Average tax rate
Income
37. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Buyer's surplus
Sunk cost
Outside lag
38. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Okun's Law
Core rate of inflation
Gross Domestic Product (GDP)
39. The monetary sector focuses on the ________ rate.
Labor productivity
Boom
Interest
Credibility of monetary policy
40. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Free market
Normative analysis
Seller's reservation price
Keynesian economic theory
41. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Planned aggregate expenditure (PAE)
Supply-side policy
The real GDP per person
42. The percentage of working-age people within the labor force
Planned aggregate expenditure (PAE)
Labor productivity
Participation rate
Keynesian model
43. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Law of Supply
Disinflation
Partnership
Consumption
44. Most free-market banking systems are based on __________ reserves.
Income
Consumer Nondurables
Relative price
Fractional
45. An increase in spending due to a perceived increase in wealth.
Menu cost
The Wealth Effect
Phillips curve
Total surplus
46. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Price level
Income
Structural unemployment
Hyperinflation
47. When prices fall consistently over time - leading to negative inflation.
Consumption function
Deflation
Interest
decreases increases
48. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Business cycle
Disinflation
Intermediate Goods
Labor supply
49. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Structural unemployment
Normative analysis
Labor unions
50. The ease with which an asset can be converted to currency.
Average tax rate
Gross Domestic Product (GDP)
Liquidity
Frictional unemployment