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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. When inflation suddenly deviates from its normal course.
Inflation shock
AD curve intersects the SAS curve
Recession
Seller's surplus
2. A Scottish man (1723-1790) who is known as the father of modern economics.
Worker mobility
Adam Smith
Aggregate supply
Labor productivity
3. The total value of goods and services produced in a country valued at current prices.
Labor unions
Keynesian economic theory
Nominal GDP
Substitution bias
4. A free market system that relies on private property ownership and supply and demand
Capitalism
Gross Domestic Product (GDP)
Market equilibrium
Real GDP
5. The movement of workers between jobs - companies - and industries
Aggregate supply
Trough
Unemployment insurance
Worker mobility
6. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross National Product (GNP)
Business cycle
Worker mobility
Lorenz curve
7. The international sector emphasizes the ________ rate.
Total surplus
Laffer curve
Exchange
Inflationary gap
8. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Output gap
Substitution effect
Planned aggregate expenditure (PAE)
Invisible hand
9. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Seller's surplus
Pay
Tangible Assets
Rationing
10. Business entity which legally has no separate existence from its owner.
Sole proprietorship
Core rate of inflation
Autonomous Expenditure
Pay
11. 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.
Inflation shock
Inside lag
Traditional economic system
Macroeconomics
12. A quantity that is measured in real terms - the actual quantity of a good or service
Congressional budget office
Aggregate Supply
Short run equilibrium output
Real quantity
13. The amount of workers that are willing to work for a real wage.
Credibility of monetary policy
Labor supply
NRU
Adam Smith
14. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Gross Domestic Product (GDP)
Corporation
The real GDP per person
Price
15. Goods that are used in the production of final goods.
Intermediate goods
Four sectors of the economy
Supply-side policy
Unemployment insurance
16. Combines pure market and command. Example: Japan
Mixed market
The real GDP per person
AD curve intersects the SAS curve
Consumption function
17. Goods and services sector - Labor sector - monetary sector - international sector.
Trough
Four sectors of the economy
Phillips curve
Inflation
18. A result of there only being one buyer of a resource input - good - or service.
Monopsony
Output gap
Unemployment insurance
Labor unions
19. The continuing increase in the average level of prices of goods and services over time.
Capitalism
Inflation
Quantity equation
Asset
20. The annual percentage rate of change in price level reflected by price indexes
The rate of inflation
Keynesian model
Structural unemployment
The real GDP per person
21. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Invisible hand
Phillips curve
AD curve intersects the SAS curve
LRAS
22. The relationship between disposable income and spending on consumable goods and services
Recession
AD curve intersects the SAS curve
Cyclical unemployment
Consumption function
23. When the rate of inflation is extremely high.
Relative price
Planned aggregate expenditure (PAE)
Hyperinflation
Buyer's surplus
24. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
The quality adjustment bias
Income
Hyperinflation
Velocity
25. Maximum price that a customer is willing to pay for a good
Capital income
Reservation price
Aggregate supply shock
Keynesian model
26. The real cost of changing a listed price.
Menu cost
Invisible hand
Trough
Substitution bias
27. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Lorenz curve
Excess Supply
Intermediate goods
Macroeconomics
28. (n) something of value; a resource; an advantage
Buyer's surplus
Asset
Labor unions
Policy reaction function
29. Payments that the government makes to unemployed workers.
Equilibrium price
Unemployment insurance
Aggregate demand
Indexing
30. The degree to which people have access to goods and services that make their lives better.
Structural policy
Standard of living
Intermediate Goods
Velocity
31. Goods not counted in the nation's GDP.
Inside lag
The quality adjustment bias
Intermediate Goods
Stabilization policies
32. Total supply of goods and services in an economy
Autonomous Expenditure
Aggregate supply
Inflation shock
Partnership
33. 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.
Nominal GDP
Autonomous Expenditure
Command economic system
Four sectors of the economy
34. 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.
Real employment
Recession
Command economic system
Equilibrium price
35. 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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36. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Inflationary gap
Income
Aggregate Supply
37. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Excess Supply
Phillips curve
Exchange
Stabilization policies
38. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Peak
Rationing
Aggregate Supply
Potential output
39. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal
Corporation
Complement
Real GDP
Core rate of inflation
40. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Business cycle
Quantity equation
Cyclical unemployment
41. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Inflation
Structural unemployment
Real employment
Marginal cost
42. When people's expectations of future inflation do not change even though inflation rates change.
Intermediate goods
Anchored inflation expectations
Command economic system
Unemployment insurance
43. 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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44. Patents - Goodwill - and Trademarks (lack physical substance)
Real GDP
Indexing
Intangible Assets
decreases increases
45. Natural Rate of Unemployment - a rate that will always exist
Mixed market
Price
NRU
Real GDP
46. Used to demonstrate shifts in income distribution among a population over time.
Excess Supply
Lorenz curve
Partnership
Traditional economic system
47. An increase in spending due to a perceived increase in wealth.
Seller's reservation price
Sunk cost
Traditional economic system
The Wealth Effect
48. Represents the governmental tax rate that will best maximize tax revenues.
Mixed market
Supply-side policy
Consumption function
Laffer curve
49. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
AD curve intersects the SAS curve
Excess Supply
Free market
Substitution effect
50. Unicorporated entity that has shared ownership.
Consumption function
Structural unemployment
Exchange
Partnership