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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 rate of price increase on all things except food and energy
Inside lag
Labor unions
Core rate of inflation
Keynesian economic theory
2. Goods that are used in the production of final goods.
Business cycle
Intermediate goods
Corporation
Cyclical unemployment
3. The movement of workers between jobs - companies - and industries
Worker mobility
Gross National Product (GNP)
Outside lag
Real employment
4. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Economic efficiency
Deflation
Keynesian economic theory
Saving
5. 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.
Law of Diminishing Marginal Utility
Output gap
Intermediate Goods
Anchored inflation expectations
6. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Real quantity
Price
Keynesian economic theory
Sole proprietorship
7. The increase in total benefit that comes from producing one additional unit.
Consumption function
Income
Velocity
Marginal benefit
8. The time between the need for a macroeconomic policy and its implementation
Law of Diminishing Marginal Utility
Marginal tax rate
Inside lag
Expansionary policies
9. Goods and services sector - Labor sector - monetary sector - international sector.
Core rate of inflation
Four sectors of the economy
Contractionary policies
Keynesian model
10. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal cost
Inside lag
Marginal tax rate
Gross Domestic Product (GDP)
11. The level of output where output equals planned aggregate expenditure
Short run equilibrium output
Aggregation
Peak
Consumer Nondurables
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.
Intermediate goods
Law of Demand
Unemployment insurance
Interest
13. 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
Law of Supply
Aggregate supply shock
Substitution bias
Stabilization policies
14. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Real quantity
The rate of inflation
Seller's reservation price
Free market
15. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
The Wealth Effect
Substitution bias
The quality adjustment bias
Exchange
16. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Law of Demand
Marginal tax rate
Policy reaction function
17. Real Estate - Equipment - and Cash (physical assets)
Monopsony
Sunk cost
The real GDP per person
Tangible Assets
18. 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
AD curve intersects the SAS curve
The real GDP per person
Monetarism
Hyperinflation
19. The annual percentage rate of change in price level reflected by price indexes
Labor productivity
Saving
Congressional budget office
The 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 .
Keynesian economic theory
LRAS
Deflation
Consumption
21. Maximum price that a customer is willing to pay for a good
Gross National Product (GNP)
Reservation price
Labor productivity
Keynesian economic theory
22. The real cost of changing a listed price.
Short run equilibrium output
Menu cost
Fisher effect
The principle of efficiency
23. Goods not counted in the nation's GDP.
Intangible Assets
Core rate of inflation
Business cycle
Intermediate Goods
24. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Okun's Law
Relative price
Free market
25. A quantity that is measured in real terms - the actual quantity of a good or service
The Wealth Effect
Quantity equation
Seller's surplus
Real quantity
26. The output per employed worker
Deflation
Sunk cost
Labor productivity
Gross National Product (GNP)
27. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Asset
Phillips curve
Gross National Product (GNP)
Supply-side policy
28. The basic assumption of this model is that in the short run - firms meet demand at present price.
Short run equilibrium output
Congressional budget office
Keynesian model
Four sectors of the economy
29. A measure of overall price levels at a specific point in the price index.
Price level
The real GDP per person
Monetarism
Intermediate Goods
30. Business entity which legally has no separate existence from its owner.
Substitution effect
Sole proprietorship
Labor productivity
Business cycle
31. A Scottish man (1723-1790) who is known as the father of modern economics.
Excess Supply
Labor unions
Adam Smith
Frictional unemployment
32. Patents - Goodwill - and Trademarks (lack physical substance)
Rationing
Hyperinflation
Intangible Assets
Credibility of monetary policy
33. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Inflation
AD curve intersects the SAS curve
Rationing
Capital goods
34. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
NRU
Consumer Nondurables
Unemployment insurance
decreases increases
35. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Substitution effect
Congressional budget office
Worker mobility
Capital income
36. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Expansionary policies
Monopsony
The real GDP per person
Businesses
37. 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.
Potential output
Adam Smith
Quantity equation
Real employment
38. The goods and services sector focuses largely on the level of ______ .
Credibility of monetary policy
Income
Adam Smith
Saving
39. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Businesses
Total surplus
Automatic stabilizers
Intermediate goods
40. The maximum amount that an economy can output over a period of time
Potential output
Reservation price
Command economic system
Total surplus
41. Total tax paid divided by total (taxable) income - as a percentage.
Potential output
Mixed market
Average tax rate
Gross Domestic Product (GDP)
42. 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.
Stabilization policies
Law of Supply
Gross National Product (GNP)
Inflationary gap
43. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Equilibrium price
Aggregate Supply
Macroeconomics
Aggregate supply shock
44. The labor sector highlights the rate of ____ .
Aggregate demand
Trough
Interest
Pay
45. 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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46. The degree to which people have access to goods and services that make their lives better.
Standard of living
LRAS
Law of Demand
Marginal benefit
47. The amount of workers that are willing to work for a real wage.
Complement
Expansionary policies
The quality adjustment bias
Labor supply
48. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Peak
Exchange
AD curve intersects the SAS curve
Sole proprietorship
49. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Buyer's surplus
Structural policy
Law of Demand
50. A large - unexpected change in the cost of resources.
Businesses
Indexing
Recession
Aggregate supply shock