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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 amount of workers that are willing to work for a real wage.
Excess Supply
Labor supply
Seller's surplus
AD curve intersects the SAS curve
2. A measure of overall price levels at a specific point in the price index.
Consumer Nondurables
Planned aggregate expenditure (PAE)
Boom
Price level
3. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
The real GDP per person
The Wealth Effect
Rationing
Liquidity
4. Most free-market banking systems are based on __________ reserves.
Real GDP
Fractional
Inflation inertia
Four sectors of the economy
5. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Fractional
Stabilization policies
Okun's Law
decreases increases
6. The real cost of changing a listed price.
Menu cost
Cyclical unemployment
Substitution effect
Unemployment insurance
7. The rate of price increase on all things except food and energy
Core rate of inflation
Participation rate
Aggregation
Boom
8. A record of economic increases and decreases over time.
Autonomous Expenditure
Marginal cost
Intermediate Goods
Business cycle
9. 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.
Keynesian economic theory
The rate of inflation
Real employment
Socially optimal quantity
10. The government office that is responsible for projecting federal surpluses and deficits
Laffer curve
The rate of inflation
Inflation inertia
Congressional budget office
11. An increase in this would cause an increase in the aggregate supply
Normative analysis
Labor productivity
Cyclical unemployment
Liquidity
12. When the rate of inflation is extremely high.
Autonomous Expenditure
Labor productivity
Phillips curve
Hyperinflation
13. Organizations that act as moderators between employers and employees
Total surplus
Labor unions
Lorenz curve
Intermediate goods
14. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.
Consumption function
Core rate of inflation
Law of Diminishing Marginal Utility
Short run equilibrium output
15. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Disinflation
Lorenz curve
Expansionary policies
16. A free market system that relies on private property ownership and supply and demand
Marginal tax rate
Average tax rate
Macroeconomics
Capitalism
17. The continuing increase in the average level of prices of goods and services over time.
Planned aggregate expenditure (PAE)
Laffer curve
Labor supply
Inflation
18. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Marginal benefit
Macroeconomics
Automatic stabilizers
19. Used in the production of final goods - but instead of being consumed - are available for reuse.
Hyperinflation
Total surplus
Keynesian model
Capital goods
20. The annual percentage rate of change in price level reflected by price indexes
The rate of inflation
Monetarism
Command economic system
Excess Supply
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.
Laffer curve
Liquidity
Equilibrium price
Automatic stabilizers
22. The difference between the price received by the seller and the seller's reservation price
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23. 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
Consumption
Four sectors of the economy
Liquidity
24. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Interest
Asset
Substitution bias
25. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Core rate of inflation
Average tax rate
Asset
26. The beginning of a recession
Seller's reservation price
Peak
Laffer curve
Reservation price
27. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Supply-side policy
Income
The quality adjustment bias
Socially optimal quantity
28. A policy that affects potential output
AD curve intersects the SAS curve
Expansionary policies
Supply-side policy
Exchange
29. The movement of workers between jobs - companies - and industries
Expansionary policies
Worker mobility
Aggregate Supply
Exchange
30. Payments that the government makes to unemployed workers.
Inflation
Unemployment insurance
Quantity equation
Fractional
31. The time between the need for a macroeconomic policy and its implementation
Fisher effect
Inside lag
Marginal cost
Saving
32. When inflation suddenly deviates from its normal course.
Trough
Inflation shock
Quantity equation
Market equilibrium
33. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Marginal cost
Pay
Participation rate
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.
Aggregate supply
Automatic stabilizers
Equilibrium price
Marginal benefit
35. The adding up of individual economic variables to obtain a large - general picture of the economy.
Trough
Aggregation
Business cycle
Law of Supply
36. Goods and services sector - Labor sector - monetary sector - international sector.
Anchored inflation expectations
Laffer curve
Four sectors of the economy
Okun's Law
37. When the people believe that the nation's central bank will keep inflation rates low.
Real GDP
Macroeconomics
Credibility of monetary policy
AD curve intersects the SAS curve
38. Natural Rate of Unemployment - a rate that will always exist
Standard of living
The Wealth Effect
Four sectors of the economy
NRU
39. The international sector emphasizes the ________ rate.
Exchange
Short run equilibrium output
Supply-side policy
Cyclical unemployment
40. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Four sectors of the economy
Law of Supply
Marginal cost
41. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Real employment
Fisher effect
Expansionary policies
Business cycle
42. There is an ___________ ___ when aggregate output is above potential output
Equilibrium price
Inflationary gap
Anchored inflation expectations
Interest
43. Legal entity that has received a charter from a state or federal government.
Labor unions
Fisher effect
Invisible hand
Corporation
44. When prices fall consistently over time - leading to negative inflation.
Traditional economic system
Corporation
Deflation
Gross National Product (GNP)
45. 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.
Capital income
Traditional economic system
Nominal GDP
Relative price
46. Government policies intended to increase spending and output.
Macroeconomics
Disinflation
Real employment
Expansionary policies
47. The increase in total cost that comes from producing one additional unit of a specific good or service.
Price
Capitalism
Marginal cost
Standard of living
48. When people's expectations of future inflation do not change even though inflation rates change.
Traditional economic system
Substitution effect
Socially optimal quantity
Anchored inflation expectations
49. The ease with which an asset can be converted to currency.
Liquidity
Hyperinflation
Inflation
Law of Supply
50. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Economic efficiency
Aggregate Supply
Stabilization policies
The principle of efficiency