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. There is an ___________ ___ when aggregate output is above potential output
Laffer curve
Frictional unemployment
Labor productivity
Inflationary gap
2. (n) something of value; a resource; an advantage
Fractional
Marginal tax rate
Buyer's surplus
Asset
3. When both producers and consumers are satisfied with their quantities at market price.
Gross National Product (GNP)
Seller's reservation price
Economic efficiency
Market equilibrium
4. That efficiency leads to economic prosperity for all.
Pay
Tangible Assets
Exchange
The principle of efficiency
5. When an economic unit makes more than it spends
Labor supply
Saving
Mixed market
Capitalism
6. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Price level
Rationing
Price
7. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Capitalism
Income
Law of Diminishing Marginal Utility
Aggregate Supply
8. Legal entity that has received a charter from a state or federal government.
Aggregate supply shock
Inflation shock
Corporation
Law of Supply
9. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Substitution effect
Frictional unemployment
Labor productivity
Marginal tax rate
10. The maximum amount that an economy can output over a period of time
Frictional unemployment
Supply-side policy
Structural policy
Potential output
11. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Core rate of inflation
Quantity equation
The rate of inflation
12. 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.
Labor productivity
Capitalism
Law of Demand
NRU
13. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Deflation
Labor productivity
Frictional unemployment
14. Represents the governmental tax rate that will best maximize tax revenues.
Core rate of inflation
Consumer Nondurables
Laffer curve
Output gap
15. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Marginal cost
Standard of living
AD curve intersects the SAS curve
16. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Automatic stabilizers
Marginal tax rate
Participation rate
decreases increases
17. The ease with which an asset can be converted to currency.
Intangible Assets
Equilibrium price
Unemployment insurance
Liquidity
18. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
19. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Phillips curve
Aggregate demand
Disinflation
Marginal benefit
20. The goods and services sector focuses largely on the level of ______ .
Keynesian economic theory
Capitalism
Laffer curve
Income
21. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Planned aggregate expenditure (PAE)
Intermediate goods
Law of Supply
22. A large - unexpected change in the cost of resources.
Real employment
Aggregate supply shock
Peak
Aggregate Supply
23. Maximum price that a customer is willing to pay for a good
Reservation price
Frictional unemployment
Interest
Phillips curve
24. 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
Monetarism
Exchange
Mixed market
Credibility of monetary policy
25. 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.
Traditional economic system
Relative price
Consumer Nondurables
Tangible Assets
26. The percentage of working-age people within the labor force
Traditional economic system
Capital goods
Participation rate
Interest
27. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Mixed market
Seller's surplus
Price
Asset
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.
Peak
Equilibrium price
AD curve intersects the SAS curve
Recession
29. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Tangible Assets
Fisher effect
Supply-side policy
Cyclical unemployment
30. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Boom
Exchange
Consumption
31. 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
Autonomous Expenditure
Consumption
Complement
32. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Command economic system
Free market
Menu cost
Exchange
33. The level of output where output equals planned aggregate expenditure
Consumption
Structural unemployment
Short run equilibrium output
Marginal benefit
34. Most free-market banking systems are based on __________ reserves.
Boom
Fractional
Relative price
Socially optimal quantity
35. The movement of workers between jobs - companies - and industries
NRU
Laffer curve
Worker mobility
Adam Smith
36. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Disinflation
Labor unions
The quality adjustment bias
Short run equilibrium output
37. Real Estate - Equipment - and Cash (physical assets)
Real GDP
Tangible Assets
Reservation price
Autonomous Expenditure
38. The rate of price increase on all things except food and energy
Core rate of inflation
Four sectors of the economy
Asset
Buyer's surplus
39. Goods not counted in the nation's GDP.
Market equilibrium
Fisher effect
Intermediate Goods
Inflation
40. 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
Real GDP
Partnership
Short run equilibrium output
Monetarism
41. The adding up of individual economic variables to obtain a large - general picture of the economy.
Output gap
Aggregation
Velocity
Invisible hand
42. Money multiplied by velocity equals nominal GDP.
Structural policy
Structural unemployment
Participation rate
Quantity equation
43. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Structural unemployment
Seller's surplus
Participation rate
Complement
44. Describes how the economy directly effects the actions policymakers take.
Inflation
The rate of inflation
Stabilization policies
Policy reaction function
45. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Invisible hand
Consumption
Credibility of monetary policy
Keynesian model
46. The price of a good or service in relation to the price of other goods and services.
The real GDP per person
Relative price
Liquidity
Marginal tax rate
47. Goods that are used in the production of final goods.
Capitalism
Structural policy
Intermediate goods
Anchored inflation expectations
48. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Short run equilibrium output
Monetarism
Partnership
Output gap
49. A result of there only being one buyer of a resource input - good - or service.
Socially optimal quantity
Monopsony
Aggregate supply
Corporation
50. 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.
Price level
Gross Domestic Product (GDP)
Saving
Price