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. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Menu cost
Seller's surplus
Participation rate
2. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Frictional unemployment
Reservation price
Substitution effect
3. The degree to which people have access to goods and services that make their lives better.
Income
Standard of living
Credibility of monetary policy
Price level
4. Patents - Goodwill - and Trademarks (lack physical substance)
Free market
AD curve intersects the SAS curve
Intangible Assets
Inflation
5. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Economic efficiency
Keynesian model
Autonomous Expenditure
Policy reaction function
6. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Consumption function
Capital income
Four sectors of the economy
7. The time period between a policy's implementation and its desired effects on an economy.
Laffer curve
Indexing
Outside lag
Gross National Product (GNP)
8. Caused by changes in the overall economy.
Expansionary policies
Cyclical unemployment
Businesses
Sunk cost
9. A large - unexpected change in the cost of resources.
Standard of living
Consumption function
Inside lag
Aggregate supply shock
10. Combines pure market and command. Example: Japan
The real GDP per person
Market equilibrium
Mixed market
Recession
11. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Buyer's surplus
NRU
Substitution effect
Saving
12. A quantity that is measured in real terms - the actual quantity of a good or service
Four sectors of the economy
Relative price
Real quantity
Okun's Law
13. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Average tax rate
Peak
Seller's surplus
14. When the rate of inflation is extremely high.
decreases increases
Hyperinflation
Asset
Peak
15. A record of economic increases and decreases over time.
Automatic stabilizers
Lorenz curve
Laffer curve
Business cycle
16. The time between the need for a macroeconomic policy and its implementation
Price
Inside lag
Potential output
Real quantity
17. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Fractional
Intangible Assets
Pay
18. The monetary sector focuses on the ________ rate.
Interest
Inside lag
Saving
Labor unions
19. Total supply of goods and services in an economy
Aggregate supply
Peak
Intermediate goods
Adam Smith
20. The labor sector highlights the rate of ____ .
Potential output
Pay
Disinflation
Law of Diminishing Marginal Utility
21. 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
22. A policy that affects potential output
Supply-side policy
Partnership
Inflation shock
Consumption function
23. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Tangible Assets
The real GDP per person
Quantity equation
Recession
24. The speed that money changes hands in order to buy and sell final goods and services.
Liquidity
Mixed market
Velocity
Labor productivity
25. A result of there only being one buyer of a resource input - good - or service.
Consumption
decreases increases
Monopsony
Asset
26. 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.
Corporation
Law of Demand
Unemployment insurance
Consumption
27. When the people believe that the nation's central bank will keep inflation rates low.
Substitution bias
Credibility of monetary policy
Intermediate Goods
Potential output
28. 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.
Substitution bias
Indexing
Laffer curve
Law of Supply
29. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Boom
Keynesian model
Sunk cost
30. The real cost of changing a listed price.
Planned aggregate expenditure (PAE)
Aggregation
Menu cost
The principle of efficiency
31. The level of output where output equals planned aggregate expenditure
Pay
Short run equilibrium output
Trough
The quality adjustment bias
32. A free market system that relies on private property ownership and supply and demand
Capitalism
Seller's surplus
Inflation shock
Sunk cost
33. The price of a good or service in relation to the price of other goods and services.
Keynesian model
Substitution bias
Business cycle
Relative price
34. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Consumption function
Labor productivity
Complement
Capitalism
35. The maximum amount that an economy can output over a period of time
Complement
Substitution effect
Marginal benefit
Potential output
36. The international sector emphasizes the ________ rate.
Aggregate demand
Intermediate goods
Credibility of monetary policy
Exchange
37. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Aggregate Supply
Disinflation
Socially optimal quantity
Excess Supply
38. The annual percentage rate of change in price level reflected by price indexes
Trough
Aggregation
The rate of inflation
Corporation
39. Maximum price that a customer is willing to pay for a good
Gross National Product (GNP)
Reservation price
Market equilibrium
Marginal benefit
40. The rate of price increase on all things except food and energy
Excess Supply
Core rate of inflation
Aggregation
Frictional unemployment
41. When an economic unit makes more than it spends
Aggregate supply
Real employment
Core rate of inflation
Saving
42. Used to demonstrate shifts in income distribution among a population over time.
Peak
Real employment
Lorenz curve
Labor productivity
43. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Indexing
Consumer Nondurables
Sole proprietorship
44. 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
45. Goods like food and clothing that have a short lifespan.
Labor supply
Menu cost
Consumer Nondurables
Complement
46. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Labor productivity
LRAS
Seller's surplus
Aggregate demand
47. The output per employed worker
Inflationary gap
Lorenz curve
Price
Labor productivity
48. The relationship between disposable income and spending on consumable goods and services
Consumption function
Substitution effect
Core rate of inflation
Recession
49. The percentage of working-age people within the labor force
Participation rate
Marginal benefit
Capital income
Law of Supply
50. A macroeconomic policy that directly affects the structure and various institutions of an economy
The rate of inflation
Structural policy
Adam Smith
Consumption