SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. The rate of price increase on all things except food and energy
Anchored inflation expectations
Law of Supply
Total surplus
Core rate of inflation
2. Extreme economic growth
Boom
Total surplus
Adam Smith
Stabilization policies
3. The movement of workers between jobs - companies - and industries
Stabilization policies
Core rate of inflation
Recession
Worker mobility
4. When an economic unit makes more than it spends
Price
Inflation
Saving
Automatic stabilizers
5. 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
Substitution bias
Laffer curve
Keynesian model
Normative analysis
6. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Seller's reservation price
The rate of inflation
Sunk cost
7. Goods like food and clothing that have a short lifespan.
Velocity
The principle of efficiency
Capitalism
Consumer Nondurables
8. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Autonomous Expenditure
Keynesian economic theory
Seller's reservation price
Businesses
9. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Disinflation
NRU
Market equilibrium
10. Maximum price that a customer is willing to pay for a good
Reservation price
Seller's surplus
Output gap
Interest
11. The time period between a policy's implementation and its desired effects on an economy.
Labor unions
Outside lag
Autonomous Expenditure
Trough
12. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Intermediate goods
Traditional economic system
The principle of efficiency
13. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Expansionary policies
Fisher effect
Phillips curve
14. The basic assumption of this model is that in the short run - firms meet demand at present price.
Saving
Frictional unemployment
Indexing
Keynesian model
15. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Exchange
Recession
Seller's surplus
Liquidity
16. The real cost of changing a listed price.
Participation rate
Menu cost
Worker mobility
Aggregate Supply
17. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
AD curve intersects the SAS curve
Price level
Marginal cost
18. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Trough
Substitution bias
Average tax rate
19. The labor sector highlights the rate of ____ .
Aggregation
Policy reaction function
Outside lag
Pay
20. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fisher effect
The principle of efficiency
Recession
Asset
21. Describes how the economy directly effects the actions policymakers take.
Interest
Law of Supply
Policy reaction function
Velocity
22. The amount of workers that are willing to work for a real wage.
Nominal GDP
Labor supply
Liquidity
Substitution effect
23. The total planned spending on final goods and services.
Aggregate Supply
Policy reaction function
Planned aggregate expenditure (PAE)
Stabilization policies
24. That efficiency leads to economic prosperity for all.
Seller's surplus
Price level
The principle of efficiency
Recession
25. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Corporation
decreases increases
Consumer Nondurables
Inflation inertia
26. A free market system that relies on private property ownership and supply and demand
Capitalism
Sole proprietorship
Inflation shock
Phillips curve
27. The annual percentage rate of change in price level reflected by price indexes
The rate of inflation
The principle of efficiency
Four sectors of the economy
LRAS
28. The part of economics study that looks at the operation of a nation's economy as a whole
Inflation inertia
Excess Supply
Macroeconomics
Invisible hand
29. The difference between the price received by the seller and the seller's reservation price
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
30. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Capital goods
Trough
Economic efficiency
31. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Hyperinflation
Complement
Reservation price
Structural unemployment
32. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Aggregate Supply
Automatic stabilizers
Structural policy
33. The level of output where output equals planned aggregate expenditure
Core rate of inflation
Inflation shock
Short run equilibrium output
Price level
34. Concerned with analyzing whether or not a policy should be used.
Frictional unemployment
Normative analysis
Contractionary policies
Relative price
35. The continuing increase in the average level of prices of goods and services over time.
Business cycle
The Wealth Effect
Pay
Inflation
36. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Indexing
Keynesian model
Adam Smith
37. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
38. An increase in this would cause an increase in the aggregate supply
Aggregate demand
Normative analysis
Labor productivity
Worker mobility
39. 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
Marginal benefit
Monetarism
Indexing
Consumption function
40. A record of economic increases and decreases over time.
The real GDP per person
Business cycle
Labor unions
Businesses
41. Used to demonstrate shifts in income distribution among a population over time.
Anchored inflation expectations
Inflation shock
Lorenz curve
Socially optimal quantity
42. The total value of goods and services produced in a country valued at current prices.
Nominal GDP
Normative analysis
Inflation inertia
Labor unions
43. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Structural unemployment
Substitution effect
Businesses
Labor unions
44. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Planned aggregate expenditure (PAE)
Okun's Law
Excess Supply
Stabilization policies
45. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Boom
Worker mobility
Structural unemployment
Quantity equation
46. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Fractional
Inflationary gap
Peak
Total surplus
47. The price of a good or service in relation to the price of other goods and services.
Labor supply
Keynesian economic theory
Unemployment insurance
Relative price
48. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Lorenz curve
Aggregate Supply
Interest
49. Combines pure market and command. Example: Japan
Macroeconomics
Command economic system
Saving
Mixed market
50. Goods not counted in the nation's GDP.
Expansionary policies
Law of Diminishing Marginal Utility
Intangible Assets
Intermediate Goods