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Test your basic knowledge |
CLEP Macroeconomics - 3
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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 total value of goods and services produced in a country valued at current prices.
Relative price
Nominal GDP
Short run equilibrium output
Corporation
2. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Standard of living
AD curve intersects the SAS curve
Consumption
Keynesian economic theory
3. A policy that affects potential output
Supply-side policy
Substitution bias
Businesses
Real employment
4. 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.
Structural policy
Real GDP
The Wealth Effect
Law of Demand
5. Combines pure market and command. Example: Japan
Mixed market
Substitution effect
Potential output
Aggregate Supply
6. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Total surplus
Indexing
Substitution effect
Keynesian economic theory
7. When inflation suddenly deviates from its normal course.
Inflation shock
Intermediate goods
Law of Supply
Output gap
8. When the rate of inflation is extremely high.
Excess Supply
Keynesian economic theory
Hyperinflation
Tangible Assets
9. A large - unexpected change in the cost of resources.
Aggregate demand
Market equilibrium
Price
Aggregate supply shock
10. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fisher effect
Frictional unemployment
Aggregate Supply
Laffer curve
11. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Structural policy
Invisible hand
Labor supply
Mixed market
12. The government office that is responsible for projecting federal surpluses and deficits
Price level
The rate of inflation
Congressional budget office
Asset
13. Natural Rate of Unemployment - a rate that will always exist
Substitution effect
Invisible hand
Partnership
NRU
14. There is an ___________ ___ when aggregate output is above potential output
Recession
Total surplus
Liquidity
Inflationary gap
15. The speed that money changes hands in order to buy and sell final goods and services.
Okun's Law
Socially optimal quantity
Law of Supply
Velocity
16. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Income
Rationing
Intangible Assets
Capital income
17. A free market system that relies on private property ownership and supply and demand
Intermediate Goods
Nominal GDP
Standard of living
Capitalism
18. The monetary sector focuses on the ________ rate.
Macroeconomics
Interest
Consumption
Four sectors of the economy
19. A result of there only being one buyer of a resource input - good - or service.
Seller's reservation price
Monopsony
Pay
Real quantity
20. Government policies intended to increase spending and output.
Aggregate supply
Expansionary policies
Autonomous Expenditure
Real employment
21. The amount of workers that are willing to work for a real wage.
Total surplus
Boom
Contractionary policies
Labor supply
22. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).
Monetarism
Capital income
Law of Diminishing Marginal Utility
Frictional unemployment
23. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Rationing
Mixed market
Output gap
Substitution effect
24. Goods not counted in the nation's GDP.
Capital goods
Aggregate supply
Intermediate Goods
Okun's Law
25. Goods and services sector - Labor sector - monetary sector - international sector.
decreases increases
Inflation shock
Four sectors of the economy
Keynesian economic theory
26. Government policies aimed at stabilizing the economy by eliminating output gaps
Inflation
Equilibrium price
Stabilization policies
Law of Diminishing Marginal Utility
27. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Relative price
Disinflation
Autonomous Expenditure
Businesses
28. A macroeconomic policy that directly affects the structure and various institutions of an economy
Sunk cost
Seller's surplus
Structural policy
Average tax rate
29. Real Estate - Equipment - and Cash (physical assets)
Worker mobility
Tangible Assets
Seller's reservation price
The rate of inflation
30. The ease with which an asset can be converted to currency.
Output gap
Inflation inertia
Liquidity
Structural policy
31. The increase in total cost that comes from producing one additional unit of a specific good or service.
Unemployment insurance
Marginal cost
Inflation
decreases increases
32. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Reservation price
The principle of efficiency
Total surplus
Monetarism
33. Maximum price that a customer is willing to pay for a good
Macroeconomics
Menu cost
Reservation price
Socially optimal quantity
34. A quantity that is measured in real terms - the actual quantity of a good or service
Labor productivity
Market equilibrium
Intermediate Goods
Real quantity
35. 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.
Credibility of monetary policy
Law of Supply
Aggregate Supply
Marginal cost
36. Business entity which legally has no separate existence from its owner.
Recession
Menu cost
Substitution bias
Sole proprietorship
37. 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.
Pay
Aggregate demand
Seller's reservation price
Contractionary policies
38. The percentage of working-age people within the labor force
Aggregation
The Wealth Effect
Socially optimal quantity
Participation rate
39. Used in the production of final goods - but instead of being consumed - are available for reuse.
Marginal cost
Inflation
Capital goods
Frictional unemployment
40. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Macroeconomics
Free market
Stabilization policies
Market equilibrium
41. Goods that are used in the production of final goods.
Supply-side policy
Macroeconomics
Substitution effect
Intermediate goods
42. Represents the governmental tax rate that will best maximize tax revenues.
Intermediate Goods
Four sectors of the economy
Core rate of inflation
Laffer curve
43. The international sector emphasizes the ________ rate.
Real employment
Marginal benefit
Invisible hand
Exchange
44. The time between the need for a macroeconomic policy and its implementation
Stabilization policies
Aggregation
Inside lag
Lorenz curve
45. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Policy reaction function
The real GDP per person
Economic efficiency
Complement
46. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Hyperinflation
Congressional budget office
Aggregate demand
Supply-side policy
47. Most free-market banking systems are based on __________ reserves.
Inflationary gap
Marginal tax rate
Sunk cost
Fractional
48. A Scottish man (1723-1790) who is known as the father of modern economics.
Sunk cost
Quantity equation
Adam Smith
Aggregate Supply
49. Total supply of goods and services in an economy
The real GDP per person
Aggregate supply
Partnership
Substitution bias
50. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Real GDP
Cyclical unemployment
AD curve intersects the SAS curve