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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. 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
Labor supply
Fractional
Substitution bias
Planned aggregate expenditure (PAE)
2. Goods that are used in the production of final goods.
Output gap
Intermediate goods
Phillips curve
Deflation
3. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Aggregate supply
Indexing
Businesses
Mixed market
4. Goods not counted in the nation's GDP.
Reservation price
Inflation shock
Intermediate Goods
Monopsony
5. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Gross Domestic Product (GDP)
Invisible hand
Recession
Inside lag
6. The time between the need for a macroeconomic policy and its implementation
Labor supply
Aggregate supply
Inside lag
Participation rate
7. The difference between the price received by the seller and the seller's reservation price
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8. 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.
Gross National Product (GNP)
Real employment
Expansionary policies
Mixed market
9. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
NRU
Labor productivity
Keynesian economic theory
The real GDP per person
10. Legal entity that has received a charter from a state or federal government.
The principle of efficiency
The rate of inflation
Indexing
Corporation
11. 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.
Law of Demand
Labor unions
Deflation
Tangible Assets
12. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Complement
Mixed market
Rationing
LRAS
13. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Interest
Price
Laffer curve
Boom
14. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Price
Labor unions
Real quantity
15. The maximum amount that an economy can output over a period of time
Potential output
Socially optimal quantity
Output gap
Substitution bias
16. The rise in taxes that occurs when before-tax income increases by one dollar
Short run equilibrium output
Marginal cost
Anchored inflation expectations
Marginal tax rate
17. The amount of workers that are willing to work for a real wage.
Aggregation
Frictional unemployment
Businesses
Labor supply
18. A result of there only being one buyer of a resource input - good - or service.
Monopsony
Monetarism
Real quantity
Structural policy
19. Natural Rate of Unemployment - a rate that will always exist
Average tax rate
NRU
Liquidity
Marginal benefit
20. The government office that is responsible for projecting federal surpluses and deficits
The Wealth Effect
Aggregate supply shock
Consumption
Congressional budget office
21. A record of economic increases and decreases over time.
Peak
Business cycle
Income
Aggregation
22. The adding up of individual economic variables to obtain a large - general picture of the economy.
Law of Demand
Aggregation
AD curve intersects the SAS curve
NRU
23. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Okun's Law
Hyperinflation
Sunk cost
Invisible hand
24. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Intermediate Goods
Consumption
Indexing
25. Total supply of goods and services in an economy
Equilibrium price
Aggregate supply
Tangible Assets
Sole proprietorship
26. Caused by changes in the overall economy.
Inflation
Liquidity
Cyclical unemployment
Labor productivity
27. Used to demonstrate shifts in income distribution among a population over time.
Excess Supply
Income
Lorenz curve
Consumption function
28. 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
Rationing
Monetarism
decreases increases
29. Most free-market banking systems are based on __________ reserves.
Macroeconomics
Fractional
Marginal benefit
Substitution bias
30. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Cyclical unemployment
Excess Supply
Marginal benefit
Boom
31. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Reservation price
The principle of efficiency
Total surplus
32. Unicorporated entity that has shared ownership.
Quantity equation
Excess Supply
Partnership
Outside lag
33. The basic assumption of this model is that in the short run - firms meet demand at present price.
Marginal cost
Fractional
Keynesian model
The rate of inflation
34. When the rate of inflation is extremely high.
Hyperinflation
Tangible Assets
Fractional
Sole proprietorship
35. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Aggregation
Structural unemployment
Inside lag
Labor unions
36. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Quantity equation
AD curve intersects the SAS curve
Macroeconomics
Boom
37. Represents the governmental tax rate that will best maximize tax revenues.
Marginal tax rate
Laffer curve
Monetarism
Output gap
38. Government policies intended to increase spending and output.
Indexing
The Wealth Effect
Expansionary policies
Policy reaction function
39. The labor sector highlights the rate of ____ .
Intermediate Goods
Four sectors of the economy
Participation rate
Pay
40. A free market system that relies on private property ownership and supply and demand
Price level
Total surplus
Capitalism
Sole proprietorship
41. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Policy reaction function
Stabilization policies
Free market
42. 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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43. Patents - Goodwill - and Trademarks (lack physical substance)
Aggregate supply
Law of Supply
Equilibrium price
Intangible Assets
44. 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.
Businesses
Worker mobility
Real employment
Automatic stabilizers
45. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Economic efficiency
Indexing
Average tax rate
46. The goods and services sector focuses largely on the level of ______ .
Autonomous Expenditure
Income
Adam Smith
Menu cost
47. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Monetarism
The Wealth Effect
Aggregation
Disinflation
48. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
The quality adjustment bias
Aggregate Supply
Consumption
Excess Supply
49. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Income
Price
Labor supply
50. The part of economics study that looks at the operation of a nation's economy as a whole
Buyer's surplus
Laffer curve
Macroeconomics
Credibility of monetary policy