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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. Total tax paid divided by total (taxable) income - as a percentage.
Hyperinflation
Average tax rate
Partnership
Expansionary policies
2. The increase in total benefit that comes from producing one additional unit.
Menu cost
Trough
Marginal benefit
Adam Smith
3. Maximum price that a customer is willing to pay for a good
Market equilibrium
Liquidity
Monetarism
Reservation price
4. Represents the governmental tax rate that will best maximize tax revenues.
Inflation
Aggregate supply shock
Laffer curve
Pay
5. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Keynesian economic theory
Price level
Expansionary policies
Phillips curve
6. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Substitution effect
Labor unions
Seller's surplus
Income
7. A large - unexpected change in the cost of resources.
Business cycle
Aggregate supply shock
Labor unions
Normative analysis
8. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Quantity equation
Marginal benefit
Planned aggregate expenditure (PAE)
Consumption
9. The part of economics study that looks at the operation of a nation's economy as a whole
Real employment
Macroeconomics
Law of Diminishing Marginal Utility
Keynesian economic theory
10. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Aggregate supply shock
Stabilization policies
Four sectors of the economy
11. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Macroeconomics
The quality adjustment bias
Hyperinflation
12. Unicorporated entity that has shared ownership.
Real GDP
Recession
Macroeconomics
Partnership
13. The amount of workers that are willing to work for a real wage.
Gross Domestic Product (GDP)
The principle of efficiency
Policy reaction function
Labor supply
14. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Law of Diminishing Marginal Utility
Potential output
Real GDP
Socially optimal quantity
15. Most free-market banking systems are based on __________ reserves.
The real GDP per person
Disinflation
Okun's Law
Fractional
16. 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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17. Used in the production of final goods - but instead of being consumed - are available for reuse.
Business cycle
Capital goods
Deflation
Inflation
18. Government policies intended to increase spending and output.
Marginal benefit
Expansionary policies
Quantity equation
Tangible Assets
19. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Buyer's surplus
Interest
Intermediate goods
20. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Asset
The principle of efficiency
Marginal benefit
21. Caused by changes in the overall economy.
The rate of inflation
Standard of living
Cyclical unemployment
Marginal benefit
22. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Contractionary policies
Labor productivity
Disinflation
The real GDP per person
23. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Sole proprietorship
Complement
AD curve intersects the SAS curve
Macroeconomics
24. 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
Stabilization policies
Average tax rate
Macroeconomics
25. Legal entity that has received a charter from a state or federal government.
Corporation
Inflation
Contractionary policies
Reservation price
26. A policy that affects potential output
Expansionary policies
Supply-side policy
Sole proprietorship
LRAS
27. The annual percentage rate of change in price level reflected by price indexes
Real GDP
Monetarism
The rate of inflation
Labor unions
28. The difference between the price received by the seller and the seller's reservation price
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29. 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.
Economic efficiency
Standard of living
Real employment
Outside lag
30. Combines pure market and command. Example: Japan
Income
Participation rate
Mixed market
Consumption
31. 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.
Short run equilibrium output
Core rate of inflation
Law of Demand
Complement
32. 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).
Frictional unemployment
Keynesian economic theory
Supply-side policy
Quantity equation
33. 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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34. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Labor unions
Price
Inflationary gap
35. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Contractionary policies
Mixed market
Sunk cost
Substitution bias
36. The output per employed worker
Velocity
Keynesian model
Command economic system
Labor productivity
37. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Partnership
Contractionary policies
Capitalism
decreases increases
38. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Inflation
Total surplus
Pay
decreases increases
39. Natural Rate of Unemployment - a rate that will always exist
Traditional economic system
Phillips curve
Planned aggregate expenditure (PAE)
NRU
40. A record of economic increases and decreases over time.
The quality adjustment bias
Business cycle
Keynesian model
Law of Diminishing Marginal Utility
41. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Monetarism
The Wealth Effect
LRAS
42. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Aggregate supply shock
Recession
The rate of inflation
Capital goods
43. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply
Frictional unemployment
Monetarism
Price
Law of Supply
44. The total planned spending on final goods and services.
Credibility of monetary policy
Planned aggregate expenditure (PAE)
Labor productivity
Socially optimal quantity
45. Goods and services sector - Labor sector - monetary sector - international sector.
Policy reaction function
Four sectors of the economy
Expansionary policies
Quantity equation
46. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Automatic stabilizers
Gross National Product (GNP)
Adam Smith
Average tax rate
47. 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.
Equilibrium price
Credibility of monetary policy
Marginal benefit
Intermediate goods
48. Payments that the government makes to unemployed workers.
Laffer curve
Unemployment insurance
Real quantity
Automatic stabilizers
49. The maximum amount that an economy can output over a period of time
Labor productivity
Liquidity
Potential output
Recession
50. Extreme economic growth
Command economic system
Boom
Policy reaction function
Seller's reservation price