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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. Goods and services sector - Labor sector - monetary sector - international sector.
Cyclical unemployment
Four sectors of the economy
Market equilibrium
Socially optimal quantity
2. Real Estate - Equipment - and Cash (physical assets)
Real quantity
Socially optimal quantity
Tangible Assets
Sunk cost
3. The beginning of a recession
Real quantity
Asset
Peak
Inflationary gap
4. The annual percentage rate of change in price level reflected by price indexes
Seller's reservation price
The rate of inflation
Policy reaction function
Traditional economic system
5. A quantity that is measured in real terms - the actual quantity of a good or service
Velocity
Total surplus
NRU
Real quantity
6. Maximum price that a customer is willing to pay for a good
Free market
Average tax rate
Reservation price
decreases increases
7. The goods and services sector focuses largely on the level of ______ .
Price level
Income
Participation rate
Buyer's surplus
8. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Labor productivity
Labor productivity
Sunk cost
9. The degree to which people have access to goods and services that make their lives better.
AD curve intersects the SAS curve
Tangible Assets
Interest
Standard of living
10. 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.
Congressional budget office
Short run equilibrium output
Command economic system
Structural unemployment
11. When the people believe that the nation's central bank will keep inflation rates low.
Equilibrium price
Substitution bias
Credibility of monetary policy
Menu cost
12. The amount of workers that are willing to work for a real wage.
Peak
Four sectors of the economy
Outside lag
Labor supply
13. 1 percent more unemployment results in 2 percent less output.
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14. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Disinflation
Phillips curve
Short run equilibrium output
15. Total supply of goods and services in an economy
Labor productivity
Intangible Assets
Labor supply
Aggregate supply
16. The relationship between disposable income and spending on consumable goods and services
Marginal cost
Keynesian model
Consumption function
Market equilibrium
17. 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
Monopsony
Aggregate supply
Potential output
Monetarism
18. The time between the need for a macroeconomic policy and its implementation
Inflation
Labor productivity
Intermediate Goods
Inside lag
19. Describes how the economy directly effects the actions policymakers take.
Total surplus
Trough
Credibility of monetary policy
Policy reaction function
20. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Seller's reservation price
Substitution bias
Rationing
Substitution effect
21. The lowest point of the recession
Trough
Keynesian model
Monopsony
Worker mobility
22. An increase in spending due to a perceived increase in wealth.
The Wealth Effect
Automatic stabilizers
Consumer Nondurables
Seller's surplus
23. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Supply-side policy
The Wealth Effect
Price
The principle of efficiency
24. 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.
Consumption function
Gross Domestic Product (GDP)
Structural policy
Macroeconomics
25. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Gross Domestic Product (GDP)
Trough
Contractionary policies
26. A free market system that relies on private property ownership and supply and demand
Law of Diminishing Marginal Utility
Short run equilibrium output
The principle of efficiency
Capitalism
27. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Real GDP
Potential output
Quantity equation
Socially optimal quantity
28. Caused by changes in the overall economy.
Participation rate
Cyclical unemployment
Boom
Hyperinflation
29. The monetary sector focuses on the ________ rate.
Lorenz curve
Exchange
Interest
Adam Smith
30. Concerned with analyzing whether or not a policy should be used.
Traditional economic system
Normative analysis
Law of Diminishing Marginal Utility
Labor supply
31. 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.
Labor productivity
Saving
Equilibrium price
Autonomous Expenditure
32. The real cost of changing a listed price.
Velocity
Intangible Assets
Price level
Menu cost
33. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Boom
The quality adjustment bias
Fisher effect
34. The continuing increase in the average level of prices of goods and services over time.
Frictional unemployment
Income
Buyer's surplus
Inflation
35. Extreme economic growth
Total surplus
AD curve intersects the SAS curve
Boom
Intermediate Goods
36. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Law of Demand
Monetarism
Recession
Disinflation
37. 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).
Nominal GDP
Labor unions
Frictional unemployment
Supply-side policy
38. The speed that money changes hands in order to buy and sell final goods and services.
Keynesian economic theory
Real GDP
Intermediate goods
Velocity
39. A Scottish man (1723-1790) who is known as the father of modern economics.
Labor supply
Four sectors of the economy
Adam Smith
Marginal tax rate
40. The price of a good or service in relation to the price of other goods and services.
Fisher effect
Relative price
Inflation shock
Pay
41. 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
The Wealth Effect
Traditional economic system
NRU
42. The total value of goods and services produced in a country valued at current prices.
Nominal GDP
Potential output
Seller's reservation price
Macroeconomics
43. There is an ___________ ___ when aggregate output is above potential output
Inflation
Structural unemployment
Inflationary gap
decreases increases
44. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Rationing
Consumption
Expansionary policies
Peak
45. 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.
Seller's surplus
Law of Diminishing Marginal Utility
Participation rate
Tangible Assets
46. When people's expectations of future inflation do not change even though inflation rates change.
Buyer's surplus
Asset
Indexing
Anchored inflation expectations
47. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Seller's reservation price
Aggregate demand
Marginal cost
Intangible Assets
48. The law that states that as the price of any good or service increases - the quantity of that good or service will increase and vice versa.
Rationing
The Wealth Effect
Law of Supply
Gross National Product (GNP)
49. The ease with which an asset can be converted to currency.
Hyperinflation
Consumption
Liquidity
Worker mobility
50. Patents - Goodwill - and Trademarks (lack physical substance)
Boom
Labor supply
Intangible Assets
Reservation price