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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. The total value of goods and services produced in a country valued at current prices.
Equilibrium price
Core rate of inflation
Indexing
Nominal GDP
2. When the people believe that the nation's central bank will keep inflation rates low.
Aggregate Supply
Equilibrium price
Automatic stabilizers
Credibility of monetary policy
3. Total supply of goods and services in an economy
Aggregate supply
Inflation shock
Free market
Relative price
4. That efficiency leads to economic prosperity for all.
Substitution effect
Equilibrium price
Normative analysis
The principle of efficiency
5. A policy that affects potential output
Inflation inertia
Supply-side policy
Law of Diminishing Marginal Utility
Complement
6. Government policies intended to increase spending and output.
Capital income
Okun's Law
Expansionary policies
Intermediate Goods
7. There is an ___________ ___ when aggregate output is above potential output
Saving
Inflationary gap
Asset
Normative analysis
8. Caused by changes in the overall economy.
Price level
Intangible Assets
Cyclical unemployment
Average tax rate
9. The government office that is responsible for projecting federal surpluses and deficits
Lorenz curve
Interest
Laffer curve
Congressional budget office
10. 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.
Liquidity
Sole proprietorship
The real GDP per person
Real employment
11. The maximum amount that an economy can output over a period of time
Sunk cost
decreases increases
Potential output
Business cycle
12. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Nominal GDP
Phillips curve
Marginal benefit
13. The ease with which an asset can be converted to currency.
Income
Liquidity
Expansionary policies
Asset
14. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Aggregate demand
Tangible Assets
Velocity
15. Goods like food and clothing that have a short lifespan.
Marginal cost
Consumption
Seller's reservation price
Consumer Nondurables
16. Payments that the government makes to unemployed workers.
Unemployment insurance
Four sectors of the economy
Average tax rate
Aggregate Supply
17. The total planned spending on final goods and services.
Interest
Worker mobility
Planned aggregate expenditure (PAE)
Labor unions
18. A free market system that relies on private property ownership and supply and demand
Hyperinflation
Invisible hand
Saving
Capitalism
19. Concerned with analyzing whether or not a policy should be used.
Indexing
Normative analysis
The quality adjustment bias
Labor unions
20. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Output gap
Traditional economic system
The real GDP per person
Inflation shock
21. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Cyclical unemployment
Gross National Product (GNP)
The real GDP per person
22. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Business cycle
Structural policy
Corporation
Socially optimal quantity
23. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Aggregate demand
Worker mobility
Complement
Intermediate goods
24. The degree to which people have access to goods and services that make their lives better.
Standard of living
Total surplus
Menu cost
Peak
25. Legal entity that has received a charter from a state or federal government.
Corporation
Business cycle
Output gap
The Wealth Effect
26. 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.
Planned aggregate expenditure (PAE)
Sole proprietorship
Law of Supply
Disinflation
27. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Inflation shock
Capital income
Policy reaction function
Sunk cost
28. The time between the need for a macroeconomic policy and its implementation
Intangible Assets
Law of Supply
Inside lag
Tangible Assets
29. The adding up of individual economic variables to obtain a large - general picture of the economy.
Congressional budget office
Deflation
Economic efficiency
Aggregation
30. Unicorporated entity that has shared ownership.
Partnership
Marginal tax rate
Reservation price
AD curve intersects the SAS curve
31. The movement of workers between jobs - companies - and industries
Keynesian economic theory
Price
Indexing
Worker mobility
32. The labor sector highlights the rate of ____ .
Outside lag
Pay
NRU
Seller's surplus
33. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Businesses
Structural policy
Reservation price
34. 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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35. A macroeconomic policy that directly affects the structure and various institutions of an economy
Congressional budget office
Sole proprietorship
Real GDP
Structural policy
36. The price of a good or service in relation to the price of other goods and services.
Relative price
Nominal GDP
Monetarism
Menu cost
37. Combines pure market and command. Example: Japan
Rationing
Mixed market
Credibility of monetary policy
Aggregate Supply
38. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Okun's Law
Disinflation
Keynesian economic theory
Law of Supply
39. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Equilibrium price
Aggregate Supply
Macroeconomics
Tangible Assets
40. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Rationing
Economic efficiency
Menu cost
Tangible Assets
41. 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.
Phillips curve
Structural policy
Law of Diminishing Marginal Utility
Monopsony
42. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Corporation
Law of Diminishing Marginal Utility
Labor productivity
Price
43. An increase in this would cause an increase in the aggregate supply
Fisher effect
Labor productivity
Substitution bias
Potential output
44. A record of economic increases and decreases over time.
The real GDP per person
Phillips curve
Business cycle
Frictional unemployment
45. 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.
Anchored inflation expectations
Aggregate supply
Equilibrium price
Law of Demand
46. 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.
The real GDP per person
Command economic system
Buyer's surplus
Participation rate
47. Business entity which legally has no separate existence from its owner.
Aggregate demand
Aggregation
Seller's surplus
Sole proprietorship
48. The amount of workers that are willing to work for a real wage.
Asset
Labor supply
Four sectors of the economy
Free market
49. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Outside lag
Socially optimal quantity
Worker mobility
AD curve intersects the SAS curve
50. When inflation suddenly deviates from its normal course.
Inflation shock
Sunk cost
Structural policy
LRAS