SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. When people's expectations of future inflation do not change even though inflation rates change.
Phillips curve
Intermediate goods
Anchored inflation expectations
Disinflation
2. A measure of overall price levels at a specific point in the price index.
Relative price
Aggregate demand
Real employment
Price level
3. Government policies intended to increase spending and output.
Buyer's surplus
Capitalism
Expansionary policies
Labor supply
4. The total planned spending on final goods and services.
Real quantity
Laffer curve
Planned aggregate expenditure (PAE)
Buyer's surplus
5. Organizations that act as moderators between employers and employees
Partnership
Labor unions
Policy reaction function
Tangible Assets
6. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Trough
Aggregate supply
Excess Supply
Aggregate demand
7. The government office that is responsible for projecting federal surpluses and deficits
Real quantity
Congressional budget office
Law of Supply
Inside lag
8. Business entity which legally has no separate existence from its owner.
Equilibrium price
Sole proprietorship
Traditional economic system
Law of Demand
9. 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)
Intermediate Goods
Law of Supply
Price level
10. When an economic unit makes more than it spends
Policy reaction function
Saving
Tangible Assets
Gross National Product (GNP)
11. The labor sector highlights the rate of ____ .
Law of Demand
Labor supply
Pay
Inside lag
12. The portion of planned aggregate expenditure that is not based on output
Stabilization policies
Short run equilibrium output
Interest
Autonomous Expenditure
13. The difference between the price received by the seller and the seller's reservation price
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
14. Unicorporated entity that has shared ownership.
Anchored inflation expectations
Average tax rate
Partnership
Buyer's surplus
15. Caused by changes in the overall economy.
Traditional economic system
Laffer curve
Recession
Cyclical unemployment
16. 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.
Law of Diminishing Marginal Utility
Law of Demand
Velocity
Consumption
17. 1 percent more unemployment results in 2 percent less output.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
18. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
The quality adjustment bias
Aggregate demand
Capital income
Consumption
19. When prices fall consistently over time - leading to negative inflation.
Traditional economic system
Keynesian model
Exchange
Deflation
20. The beginning of a recession
Capital income
Marginal benefit
Peak
Businesses
21. A result of there only being one buyer of a resource input - good - or service.
Labor productivity
Phillips curve
Income
Monopsony
22. The international sector emphasizes the ________ rate.
Exchange
Traditional economic system
Structural policy
Worker mobility
23. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Consumer Nondurables
Frictional unemployment
Aggregate Supply
The rate of inflation
24. Goods like food and clothing that have a short lifespan.
Mixed market
Structural policy
Price level
Consumer Nondurables
25. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
LRAS
Keynesian economic theory
Keynesian model
Businesses
26. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Economic efficiency
Real GDP
Indexing
Marginal tax rate
27. The continuing increase in the average level of prices of goods and services over time.
Potential output
The principle of efficiency
The quality adjustment bias
Inflation
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.
Inflation
Trough
Aggregate demand
Traditional economic system
29. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Aggregate supply shock
Rationing
Complement
Short run equilibrium output
30. (n) something of value; a resource; an advantage
Asset
Invisible hand
Real employment
Short run equilibrium output
31. The lowest point of the recession
Short run equilibrium output
Trough
Velocity
Recession
32. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Expansionary policies
Core rate of inflation
Invisible hand
Indexing
33. When inflation suddenly deviates from its normal course.
Inflation
Seller's reservation price
Inflationary gap
Inflation shock
34. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.
Intermediate goods
Credibility of monetary policy
Law of Demand
Automatic stabilizers
35. A policy that affects potential output
Supply-side policy
The rate of inflation
Aggregate supply
Interest
36. The percentage of working-age people within the labor force
Liquidity
Planned aggregate expenditure (PAE)
The principle of efficiency
Participation rate
37. Payments that the government makes to unemployed workers.
Inflation inertia
Unemployment insurance
LRAS
Consumption function
38. 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.
Capital goods
Complement
Contractionary policies
Supply-side policy
39. Government policies aimed at stabilizing the economy by eliminating output gaps
Corporation
Credibility of monetary policy
Labor supply
Stabilization policies
40. Legal entity that has received a charter from a state or federal government.
Corporation
Fisher effect
Inside lag
Mixed market
41. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fisher effect
Okun's Law
Potential output
Output gap
42. The increase in total cost that comes from producing one additional unit of a specific good or service.
LRAS
Marginal cost
Aggregate supply
Excess Supply
43. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Capitalism
Policy reaction function
Normative analysis
44. 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.
Equilibrium price
Real quantity
Tangible Assets
Relative price
45. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Structural policy
Fractional
Sunk cost
Law of Supply
46. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Participation rate
Output gap
Capital goods
Anchored inflation expectations
47. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Labor productivity
Worker mobility
AD curve intersects the SAS curve
Quantity equation
48. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
49. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Substitution bias
Excess Supply
Consumption
Pay
50. A free market system that relies on private property ownership and supply and demand
Credibility of monetary policy
Capitalism
Adam Smith
Okun's Law