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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. 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
Indexing
Labor productivity
Monetarism
Substitution bias
2. 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.
Liquidity
Traditional economic system
NRU
Real GDP
3. The real cost of changing a listed price.
Seller's reservation price
Menu cost
Aggregate supply shock
Corporation
4. Concerned with analyzing whether or not a policy should be used.
Four sectors of the economy
Normative analysis
Recession
The rate of inflation
5. Goods not counted in the nation's GDP.
Total surplus
Keynesian economic theory
Intermediate Goods
The rate of inflation
6. Total supply of goods and services in an economy
Fisher effect
Exchange
Aggregate supply
Worker mobility
7. The degree to which people have access to goods and services that make their lives better.
Reservation price
The rate of inflation
Traditional economic system
Standard of living
8. The goods and services sector focuses largely on the level of ______ .
Intermediate goods
Autonomous Expenditure
Income
The Wealth Effect
9. A large - unexpected change in the cost of resources.
Businesses
Aggregate supply shock
Inflation
Market equilibrium
10. The price of a good or service in relation to the price of other goods and services.
Economic efficiency
Inflationary gap
Relative price
Income
11. The level of output where output equals planned aggregate expenditure
Real employment
Okun's Law
Short run equilibrium output
Saving
12. The amount of workers that are willing to work for a real wage.
Indexing
Consumption
Labor supply
Intangible Assets
13. The time period between a policy's implementation and its desired effects on an economy.
Labor supply
Consumption
Laffer curve
Outside lag
14. Caused by changes in the overall economy.
Consumer Nondurables
Labor productivity
Businesses
Cyclical unemployment
15. The increase in total benefit that comes from producing one additional unit.
Price
Substitution bias
Mixed market
Marginal benefit
16. The labor sector highlights the rate of ____ .
NRU
Pay
Consumption function
Inflation inertia
17. The movement of workers between jobs - companies - and industries
Monopsony
Keynesian economic theory
Worker mobility
Total surplus
18. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
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19. A measure of overall price levels at a specific point in the price index.
Invisible hand
Price level
Seller's surplus
Real employment
20. Real Estate - Equipment - and Cash (physical assets)
Free market
Tangible Assets
Sunk cost
Worker mobility
21. The government office that is responsible for projecting federal surpluses and deficits
Liquidity
Aggregate Supply
Congressional budget office
Standard of living
22. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Intermediate goods
Core rate of inflation
Congressional budget office
LRAS
23. The beginning of a recession
Peak
Sole proprietorship
Laffer curve
Invisible hand
24. When prices fall consistently over time - leading to negative inflation.
Deflation
Law of Supply
Mixed market
Short run equilibrium output
25. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Price
Excess Supply
Tangible Assets
Consumption
26. The difference between the price received by the seller and the seller's reservation price
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27. Extreme economic growth
Standard of living
Intermediate Goods
Capitalism
Boom
28. Patents - Goodwill - and Trademarks (lack physical substance)
Intangible Assets
Aggregate supply
Inflationary gap
Traditional economic system
29. Used to demonstrate shifts in income distribution among a population over time.
Seller's surplus
Marginal cost
Expansionary policies
Lorenz curve
30. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Fisher effect
Labor productivity
Keynesian economic theory
Boom
31. Most free-market banking systems are based on __________ reserves.
Aggregate demand
Consumer Nondurables
Fractional
Marginal benefit
32. The percentage of working-age people within the labor force
Tangible Assets
Marginal cost
Participation rate
Market equilibrium
33. The speed that money changes hands in order to buy and sell final goods and services.
Substitution bias
Velocity
Menu cost
Fractional
34. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Contractionary policies
Automatic stabilizers
The quality adjustment bias
Aggregate supply
35. A Scottish man (1723-1790) who is known as the father of modern economics.
Marginal tax rate
Adam Smith
Supply-side policy
Asset
36. The total value of goods and services produced in a country valued at current prices.
Keynesian model
Monetarism
Price
Nominal GDP
37. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Law of Diminishing Marginal Utility
Peak
Rationing
Capitalism
38. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Socially optimal quantity
Structural unemployment
Standard of living
Gross Domestic Product (GDP)
39. Total tax paid divided by total (taxable) income - as a percentage.
Macroeconomics
Fractional
Planned aggregate expenditure (PAE)
Average tax rate
40. 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.
Automatic stabilizers
Market equilibrium
Intangible Assets
Reservation price
41. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Aggregate supply shock
Price
Labor productivity
42. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross National Product (GNP)
Substitution bias
Potential output
Rationing
43. 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
Core rate of inflation
Structural unemployment
Monetarism
Seller's reservation price
44. The basic assumption of this model is that in the short run - firms meet demand at present price.
Automatic stabilizers
Liquidity
Keynesian model
Law of Supply
45. When both producers and consumers are satisfied with their quantities at market price.
Indexing
Market equilibrium
Unemployment insurance
NRU
46. A policy that affects potential output
Supply-side policy
Structural policy
Reservation price
Economic efficiency
47. 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
Keynesian economic theory
Autonomous Expenditure
Structural unemployment
48. Unicorporated entity that has shared ownership.
Substitution effect
Aggregate supply
Aggregate Supply
Partnership
49. The part of economics study that looks at the operation of a nation's economy as a whole
Intangible Assets
Macroeconomics
Total surplus
Monetarism
50. The rate of price increase on all things except food and energy
Core rate of inflation
Labor unions
Mixed market
Planned aggregate expenditure (PAE)