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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 phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Labor productivity
Excess Supply
Invisible hand
Keynesian model
2. Patents - Goodwill - and Trademarks (lack physical substance)
Inside lag
Interest
Okun's Law
Intangible Assets
3. When an economic unit makes more than it spends
Relative price
Saving
Market equilibrium
Invisible hand
4. An increase in this would cause an increase in the aggregate supply
Inflation inertia
Menu cost
Labor productivity
Inflation
5. When the people believe that the nation's central bank will keep inflation rates low.
Interest
Inflation
Mixed market
Credibility of monetary policy
6. The lowest point of the recession
Consumer Nondurables
Trough
Command economic system
Congressional budget office
7. 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
Labor productivity
Potential output
Real GDP
Aggregation
8. A free market system that relies on private property ownership and supply and demand
Policy reaction function
NRU
Capitalism
The quality adjustment bias
9. A record of economic increases and decreases over time.
Business cycle
Real quantity
The principle of efficiency
Relative price
10. Natural Rate of Unemployment - a rate that will always exist
Mixed market
NRU
Intermediate Goods
Okun's Law
11. The increase in total benefit that comes from producing one additional unit.
Potential output
Peak
Inflationary gap
Marginal benefit
12. Real Estate - Equipment - and Cash (physical assets)
Frictional unemployment
Congressional budget office
Structural policy
Tangible Assets
13. The difference between the price received by the seller and the seller's reservation price
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14. The output per employed worker
decreases increases
Labor productivity
Adam Smith
Velocity
15. Total supply of goods and services in an economy
Consumer Nondurables
Laffer curve
Aggregate supply
Indexing
16. The beginning of a recession
Structural unemployment
Peak
Nominal GDP
Four sectors of the economy
17. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Normative analysis
Businesses
Consumer Nondurables
Autonomous Expenditure
18. The portion of planned aggregate expenditure that is not based on output
Saving
Indexing
Rationing
Autonomous Expenditure
19. The rate of price increase on all things except food and energy
Inflation inertia
Labor unions
Outside lag
Core rate of inflation
20. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Asset
Anchored inflation expectations
Short run equilibrium output
LRAS
21. 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.
Relative price
Marginal tax rate
Capital income
Automatic stabilizers
22. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Free market
Law of Demand
Inflation inertia
Indexing
23. 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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24. The labor sector highlights the rate of ____ .
Aggregate supply
Standard of living
AD curve intersects the SAS curve
Pay
25. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Consumer Nondurables
Marginal cost
Recession
Aggregate supply shock
26. 1 percent more unemployment results in 2 percent less output.
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27. Government policies intended to increase spending and output.
Consumption
Cyclical unemployment
Expansionary policies
Keynesian model
28. 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.
Aggregate supply
Real employment
Excess Supply
Law of Supply
29. Goods that are used in the production of final goods.
Price
Intermediate goods
Tangible Assets
Real GDP
30. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Planned aggregate expenditure (PAE)
Macroeconomics
The principle of efficiency
decreases increases
31. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Recession
Socially optimal quantity
Market equilibrium
NRU
32. Combines pure market and command. Example: Japan
Quantity equation
Hyperinflation
Mixed market
Fractional
33. 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.
Gross Domestic Product (GDP)
Substitution bias
Expansionary policies
Participation rate
34. Business entity which legally has no separate existence from its owner.
Adam Smith
AD curve intersects the SAS curve
Sole proprietorship
Intangible Assets
35. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Relative price
Tangible Assets
Liquidity
36. Concerned with analyzing whether or not a policy should be used.
The quality adjustment bias
Complement
Normative analysis
Inside lag
37. The adding up of individual economic variables to obtain a large - general picture of the economy.
Consumption
Aggregation
Law of Supply
Peak
38. 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).
Macroeconomics
Real GDP
Sunk cost
Frictional unemployment
39. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Quantity equation
Capital income
Socially optimal quantity
Consumption function
40. Extreme economic growth
LRAS
Deflation
Inflation
Boom
41. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Supply-side policy
Consumer Nondurables
Marginal cost
42. A large - unexpected change in the cost of resources.
Aggregate supply shock
Structural policy
Deflation
Inflation shock
43. Represents the governmental tax rate that will best maximize tax revenues.
Aggregate demand
Law of Supply
Labor supply
Laffer curve
44. Caused by changes in the overall economy.
Cyclical unemployment
Output gap
Labor productivity
Nominal GDP
45. The ease with which an asset can be converted to currency.
Stabilization policies
Liquidity
Command economic system
Law of Demand
46. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Lorenz curve
Invisible hand
Relative price
47. The goods and services sector focuses largely on the level of ______ .
Income
Aggregation
Seller's surplus
Macroeconomics
48. Unicorporated entity that has shared ownership.
The quality adjustment bias
Hyperinflation
Economic efficiency
Partnership
49. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Lorenz curve
Socially optimal quantity
Keynesian economic theory
LRAS
50. The total value of goods and services produced in a country valued at current prices.
Seller's surplus
Nominal GDP
The Wealth Effect
Price level