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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 relationship between disposable income and spending on consumable goods and services
The quality adjustment bias
Consumption function
Indexing
Intermediate Goods
2. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Keynesian model
decreases increases
Recession
Invisible hand
3. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Aggregate supply
Seller's reservation price
Seller's surplus
Total surplus
4. Goods and services sector - Labor sector - monetary sector - international sector.
Expansionary policies
Rationing
Inflation inertia
Four sectors of the economy
5. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Supply-side policy
Frictional unemployment
Buyer's surplus
Aggregate Supply
6. The continuing increase in the average level of prices of goods and services over time.
Credibility of monetary policy
The principle of efficiency
Pay
Inflation
7. When an economic unit makes more than it spends
Lorenz curve
Fisher effect
Potential output
Saving
8. 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.
Command economic system
Equilibrium price
Partnership
Labor productivity
9. The portion of planned aggregate expenditure that is not based on output
Excess Supply
Consumer Nondurables
Interest
Autonomous Expenditure
10. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Frictional unemployment
Tangible Assets
Sunk cost
Consumption
11. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Expansionary policies
Participation rate
The real GDP per person
Gross Domestic Product (GDP)
12. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Anchored inflation expectations
Law of Demand
Seller's surplus
13. A policy that affects potential output
Supply-side policy
Planned aggregate expenditure (PAE)
Disinflation
Market equilibrium
14. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Free market
Keynesian economic theory
Aggregation
Recession
15. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Cyclical unemployment
Income
Economic efficiency
Structural policy
16. The goods and services sector focuses largely on the level of ______ .
Inside lag
Marginal benefit
Liquidity
Income
17. A record of economic increases and decreases over time.
Reservation price
Business cycle
Income
Anchored inflation expectations
18. Maximum price that a customer is willing to pay for a good
Command economic system
Four sectors of the economy
Reservation price
Gross Domestic Product (GDP)
19. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Tangible Assets
Core rate of inflation
Inflationary gap
20. The time period between a policy's implementation and its desired effects on an economy.
Command economic system
Normative analysis
Outside lag
Policy reaction function
21. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Pay
Lorenz curve
The quality adjustment bias
22. The lowest point of the recession
Policy reaction function
Congressional budget office
Adam Smith
Trough
23. Describes how the economy directly effects the actions policymakers take.
decreases increases
Credibility of monetary policy
Policy reaction function
Structural unemployment
24. Combines pure market and command. Example: Japan
Recession
Law of Supply
Mixed market
Interest
25. The degree to which people have access to goods and services that make their lives better.
Standard of living
Businesses
Marginal benefit
Law of Diminishing Marginal Utility
26. An increase in spending due to a perceived increase in wealth.
Labor unions
Intermediate Goods
The Wealth Effect
Price level
27. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases
Price
Phillips curve
Invisible hand
Substitution bias
28. The movement of workers between jobs - companies - and industries
Hyperinflation
Contractionary policies
Labor productivity
Worker mobility
29. The monetary sector focuses on the ________ rate.
Interest
Law of Demand
Monetarism
Aggregate supply shock
30. There is an ___________ ___ when aggregate output is above potential output
Menu cost
Exchange
Inflationary gap
Seller's surplus
31. The international sector emphasizes the ________ rate.
Law of Diminishing Marginal Utility
Consumption function
Keynesian model
Exchange
32. 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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33. Goods that are used in the production of final goods.
Intermediate goods
Gross National Product (GNP)
Law of Diminishing Marginal Utility
Keynesian model
34. The real cost of changing a listed price.
Capital income
Monopsony
Menu cost
decreases increases
35. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Anchored inflation expectations
Substitution bias
Keynesian model
36. 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.
Monetarism
Trough
Capitalism
Gross Domestic Product (GDP)
37. Most free-market banking systems are based on __________ reserves.
Anchored inflation expectations
Fractional
Traditional economic system
Frictional unemployment
38. The total planned spending on final goods and services.
Monetarism
Participation rate
Sunk cost
Planned aggregate expenditure (PAE)
39. 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.
Automatic stabilizers
decreases increases
Monetarism
Outside lag
40. The labor sector highlights the rate of ____ .
Fractional
Pay
Intangible Assets
Aggregate Supply
41. A result of there only being one buyer of a resource input - good - or service.
Monopsony
Boom
Equilibrium price
Real quantity
42. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Lorenz curve
Nominal GDP
Aggregate demand
Socially optimal quantity
43. A Scottish man (1723-1790) who is known as the father of modern economics.
Autonomous Expenditure
Adam Smith
Labor unions
Worker mobility
44. 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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45. 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.
Law of Supply
Planned aggregate expenditure (PAE)
Congressional budget office
Labor unions
46. The time between the need for a macroeconomic policy and its implementation
The real GDP per person
The Wealth Effect
Marginal benefit
Inside lag
47. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Real GDP
Seller's reservation price
Keynesian economic theory
48. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.
Inflationary gap
Market equilibrium
Traditional economic system
Pay
49. (n) something of value; a resource; an advantage
Structural unemployment
Businesses
Asset
Invisible hand
50. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Boom
Output gap
Capital goods
Real quantity