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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. Total supply of goods and services in an economy
Gross National Product (GNP)
Nominal GDP
The rate of inflation
Aggregate supply
2. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Peak
Reservation price
Businesses
Labor productivity
3. A quantity that is measured in real terms - the actual quantity of a good or service
Free market
Real quantity
Consumption
Interest
4. 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.
Contractionary policies
Substitution bias
NRU
Credibility of monetary policy
5. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Capitalism
Policy reaction function
The Wealth Effect
Aggregate Supply
6. Goods not counted in the nation's GDP.
The real GDP per person
Intermediate Goods
Businesses
Quantity equation
7. The difference between the price received by the seller and the seller's reservation price
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8. 1 percent more unemployment results in 2 percent less output.
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9. The increase in total cost that comes from producing one additional unit of a specific good or service.
Law of Supply
Structural unemployment
Marginal cost
Reservation price
10. (n) something of value; a resource; an advantage
Worker mobility
Asset
The Wealth Effect
Business cycle
11. Goods like food and clothing that have a short lifespan.
Credibility of monetary policy
Consumer Nondurables
Labor unions
Capitalism
12. A policy that affects potential output
Supply-side policy
Velocity
Output gap
Recession
13. The movement of workers between jobs - companies - and industries
Law of Supply
Inside lag
Quantity equation
Worker mobility
14. Caused by changes in the overall economy.
Exchange
Credibility of monetary policy
Adam Smith
Cyclical unemployment
15. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Normative analysis
Interest
Intermediate Goods
Aggregate demand
16. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Marginal benefit
Complement
Rationing
Indexing
17. 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.
Credibility of monetary policy
Deflation
Supply-side policy
Gross Domestic Product (GDP)
18. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Law of Supply
Economic efficiency
Inflationary gap
Phillips curve
19. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Gross National Product (GNP)
The real GDP per person
Consumer Nondurables
Menu cost
20. When inflation suddenly deviates from its normal course.
Macroeconomics
Consumer Nondurables
Inflation shock
Substitution effect
21. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Price
Inside lag
Capitalism
Invisible hand
22. The rise in taxes that occurs when before-tax income increases by one dollar
Policy reaction function
Marginal tax rate
Excess Supply
Quantity equation
23. The time period between a policy's implementation and its desired effects on an economy.
Recession
Mixed market
Outside lag
Invisible hand
24. A macroeconomic policy that directly affects the structure and various institutions of an economy
Real quantity
Buyer's surplus
Structural policy
Inside lag
25. 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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26. Money multiplied by velocity equals nominal GDP.
Traditional economic system
AD curve intersects the SAS curve
The principle of efficiency
Quantity equation
27. Extreme economic growth
Contractionary policies
Economic efficiency
Capital goods
Boom
28. When an economic unit makes more than it spends
Price level
Aggregate supply shock
Saving
Interest
29. A measure of overall price levels at a specific point in the price index.
The principle of efficiency
Liquidity
Price level
Aggregation
30. 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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31. The annual percentage rate of change in price level reflected by price indexes
Liquidity
Planned aggregate expenditure (PAE)
Indexing
The rate of inflation
32. The monetary sector focuses on the ________ rate.
Cyclical unemployment
Monopsony
Interest
Deflation
33. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Inflation inertia
Socially optimal quantity
Stabilization policies
Keynesian model
34. An increase in this would cause an increase in the aggregate supply
Structural policy
Socially optimal quantity
Labor productivity
Nominal GDP
35. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Gross National Product (GNP)
Complement
Marginal benefit
Relative price
36. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Fractional
Marginal benefit
Average tax rate
37. Organizations that act as moderators between employers and employees
Labor unions
Output gap
Marginal benefit
Gross Domestic Product (GDP)
38. The amount of workers that are willing to work for a real wage.
Capital income
Law of Demand
Stabilization policies
Labor supply
39. A result of there only being one buyer of a resource input - good - or service.
Unemployment insurance
Monopsony
Adam Smith
Marginal cost
40. Most free-market banking systems are based on __________ reserves.
Fractional
Aggregate supply
Command economic system
Consumer Nondurables
41. Concerned with analyzing whether or not a policy should be used.
Substitution bias
Law of Diminishing Marginal Utility
Supply-side policy
Normative analysis
42. The level of output where output equals planned aggregate expenditure
Capitalism
Marginal tax rate
Short run equilibrium output
Traditional economic system
43. Legal entity that has received a charter from a state or federal government.
Menu cost
decreases increases
Standard of living
Corporation
44. When both producers and consumers are satisfied with their quantities at market price.
Expansionary policies
Trough
Capital income
Market equilibrium
45. Maximum price that a customer is willing to pay for a good
Peak
Pay
Reservation price
Total surplus
46. Describes how the economy directly effects the actions policymakers take.
Nominal GDP
Policy reaction function
Labor supply
Inflation inertia
47. Total tax paid divided by total (taxable) income - as a percentage.
Substitution bias
Average tax rate
Aggregate demand
Hyperinflation
48. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Cyclical unemployment
Keynesian economic theory
The principle of efficiency
Labor productivity
49. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Disinflation
Inflationary gap
Inflation inertia
Okun's Law
50. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Phillips curve
Businesses
Substitution effect
The real GDP per person