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. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Relative price
Indexing
Labor unions
2. When the people believe that the nation's central bank will keep inflation rates low.
Business cycle
Credibility of monetary policy
Free market
Fractional
3. The relationship between disposable income and spending on consumable goods and services
Consumption function
Deflation
Total surplus
Saving
4. 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
5. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Quantity equation
Autonomous Expenditure
Excess Supply
Hyperinflation
6. The labor sector highlights the rate of ____ .
Quantity equation
Pay
Labor productivity
Autonomous Expenditure
7. The government office that is responsible for projecting federal surpluses and deficits
Keynesian economic theory
Participation rate
Tangible Assets
Congressional budget office
8. The lowest point of the recession
Trough
Inflationary gap
Buyer's surplus
Adam Smith
9. The movement of workers between jobs - companies - and industries
Sunk cost
Worker mobility
Lorenz curve
Substitution effect
10. 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.
Consumer Nondurables
Command economic system
Real employment
Buyer's surplus
11. The international sector emphasizes the ________ rate.
Fisher effect
Intermediate Goods
Sunk cost
Exchange
12. Goods and services sector - Labor sector - monetary sector - international sector.
Reservation price
Keynesian economic theory
Command economic system
Four sectors of the economy
13. Government policies intended to increase spending and output.
Interest
Traditional economic system
Economic efficiency
Expansionary policies
14. An increase in spending due to a perceived increase in wealth.
The Wealth Effect
Aggregation
Inflation inertia
AD curve intersects the SAS curve
15. The slow change in inflation from year to year in industrialized nations
Lorenz curve
Laffer curve
Inflation inertia
Aggregate supply
16. Used to demonstrate shifts in income distribution among a population over time.
Seller's surplus
Unemployment insurance
Structural policy
Lorenz curve
17. 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.
Income
Marginal benefit
Price level
Law of Supply
18. 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.
Capital goods
Autonomous Expenditure
Price
Automatic stabilizers
19. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Buyer's surplus
Keynesian model
Partnership
Gross National Product (GNP)
20. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Cyclical unemployment
Interest
The Wealth Effect
21. 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).
Capital income
Labor supply
Seller's surplus
Frictional unemployment
22. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Policy reaction function
Expansionary policies
Relative price
23. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Peak
Participation rate
Marginal tax rate
24. The increase in total benefit that comes from producing one additional unit.
Four sectors of the economy
Marginal benefit
Phillips curve
Potential output
25. 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
Menu cost
Sole proprietorship
Seller's surplus
26. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Indexing
Market equilibrium
Inflationary gap
27. The speed that money changes hands in order to buy and sell final goods and services.
Anchored inflation expectations
Velocity
Corporation
Planned aggregate expenditure (PAE)
28. The adding up of individual economic variables to obtain a large - general picture of the economy.
Expansionary policies
Corporation
Aggregation
Market equilibrium
29. Patents - Goodwill - and Trademarks (lack physical substance)
AD curve intersects the SAS curve
Labor unions
Okun's Law
Intangible Assets
30. Total supply of goods and services in an economy
Free market
Aggregate supply
NRU
Phillips curve
31. The monetary sector focuses on the ________ rate.
Interest
Marginal cost
Capital income
Worker mobility
32. The time between the need for a macroeconomic policy and its implementation
Inside lag
Anchored inflation expectations
Potential output
Menu cost
33. The portion of planned aggregate expenditure that is not based on output
Potential output
Liquidity
Automatic stabilizers
Autonomous Expenditure
34. Natural Rate of Unemployment - a rate that will always exist
Substitution effect
Marginal tax rate
Interest
NRU
35. An increase in this would cause an increase in the aggregate supply
Traditional economic system
Asset
Labor productivity
Sunk cost
36. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Price
Free market
Rationing
Marginal tax rate
37. (n) something of value; a resource; an advantage
Substitution bias
Capital goods
Velocity
Asset
38. The rate of price increase on all things except food and energy
Aggregation
Relative price
Core rate of inflation
Inside lag
39. 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.
Participation rate
Pay
Short run equilibrium output
Law of Demand
40. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Partnership
Equilibrium price
Monopsony
41. Goods that are used in the production of final goods.
Partnership
Lorenz curve
Planned aggregate expenditure (PAE)
Intermediate goods
42. A large - unexpected change in the cost of resources.
Price
Excess Supply
Aggregate supply shock
Labor productivity
43. The total planned spending on final goods and services.
Marginal cost
Substitution effect
Planned aggregate expenditure (PAE)
Automatic stabilizers
44. Used in the production of final goods - but instead of being consumed - are available for reuse.
Equilibrium price
Capital goods
Labor productivity
Hyperinflation
45. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
AD curve intersects the SAS curve
Hyperinflation
The real GDP per person
Equilibrium price
46. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Labor unions
Cyclical unemployment
Intermediate Goods
47. Money multiplied by velocity equals nominal GDP.
Recession
Quantity equation
Intermediate goods
Substitution effect
48. 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.
Structural unemployment
Capital goods
Gross Domestic Product (GDP)
Inflation
49. The level of output where output equals planned aggregate expenditure
Capital goods
Short run equilibrium output
Hyperinflation
Menu cost
50. 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.
Labor supply
Corporation
Outside lag
Real employment