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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. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Structural unemployment
Businesses
Law of Demand
Total surplus
2. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Mixed market
Output gap
Excess Supply
Adam Smith
3. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Sunk cost
Substitution effect
Partnership
4. A result of there only being one buyer of a resource input - good - or service.
Aggregate Supply
Credibility of monetary policy
Monopsony
Labor supply
5. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Consumption
Asset
Gross National Product (GNP)
Invisible hand
6. The real cost of changing a listed price.
Participation rate
Structural policy
Menu cost
The principle of efficiency
7. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Marginal cost
Law of Supply
Velocity
8. The ease with which an asset can be converted to currency.
Liquidity
Pay
Inflation inertia
Intangible Assets
9. The total value of goods and services produced in a country valued at current prices.
Policy reaction function
Nominal GDP
decreases increases
The principle of efficiency
10. 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.
Standard of living
Sole proprietorship
Traditional economic system
Interest
11. That efficiency leads to economic prosperity for all.
Exchange
Inside lag
The principle of efficiency
Planned aggregate expenditure (PAE)
12. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Labor supply
Policy reaction function
Recession
13. (n) something of value; a resource; an advantage
Saving
Asset
Real employment
Structural unemployment
14. Represents the governmental tax rate that will best maximize tax revenues.
Contractionary policies
Indexing
Command economic system
Laffer curve
15. The rate of price increase on all things except food and energy
Businesses
Capitalism
Core rate of inflation
NRU
16. Government policies intended to increase spending and output.
Substitution bias
Consumption function
Expansionary policies
Credibility of monetary policy
17. The degree to which people have access to goods and services that make their lives better.
Standard of living
Inflation
Fractional
Command economic system
18. 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).
Price
Real quantity
Trough
Frictional unemployment
19. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Core rate of inflation
Phillips curve
Expansionary policies
20. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Intangible Assets
Labor productivity
Standard of living
21. The adding up of individual economic variables to obtain a large - general picture of the economy.
Socially optimal quantity
Aggregation
Laffer curve
Law of Diminishing Marginal Utility
22. Combines pure market and command. Example: Japan
Structural unemployment
Mixed market
Short run equilibrium output
Aggregate demand
23. The portion of planned aggregate expenditure that is not based on output
Potential output
Corporation
Autonomous Expenditure
Nominal GDP
24. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Participation rate
Monopsony
Seller's reservation price
25. Goods and services sector - Labor sector - monetary sector - international sector.
Normative analysis
Exchange
Worker mobility
Four sectors of the economy
26. An increase in this would cause an increase in the aggregate supply
Inflation inertia
Income
Labor productivity
Inflationary gap
27. The goods and services sector focuses largely on the level of ______ .
Income
Mixed market
Rationing
Contractionary policies
28. 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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29. 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.
Price level
Sunk cost
Businesses
Law of Diminishing Marginal Utility
30. A measure of overall price levels at a specific point in the price index.
Price level
Partnership
Invisible hand
Marginal tax rate
31. Extreme economic growth
Nominal GDP
Keynesian model
Price level
Boom
32. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
The real GDP per person
Rationing
Economic efficiency
Aggregate supply
33. When prices fall consistently over time - leading to negative inflation.
Substitution effect
Law of Supply
Deflation
Supply-side policy
34. The movement of workers between jobs - companies - and industries
Worker mobility
The rate of inflation
Total surplus
Tangible Assets
35. A policy that affects potential output
Lorenz curve
Supply-side policy
Potential output
Disinflation
36. Total supply of goods and services in an economy
Corporation
Aggregate supply
Consumption
Capitalism
37. The government office that is responsible for projecting federal surpluses and deficits
Laffer curve
Economic efficiency
Congressional budget office
Price
38. Government policies aimed at stabilizing the economy by eliminating output gaps
Saving
Fisher effect
Stabilization policies
Complement
39. The output per employed worker
decreases increases
Consumption
Consumer Nondurables
Labor productivity
40. 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
Aggregate supply
Substitution bias
Supply-side policy
Corporation
41. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Command economic system
Capital income
Expansionary policies
42. Money multiplied by velocity equals nominal GDP.
Economic efficiency
Quantity equation
Core rate of inflation
The quality adjustment bias
43. The time between the need for a macroeconomic policy and its implementation
Frictional unemployment
Rationing
Worker mobility
Inside lag
44. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Intermediate Goods
Potential output
Rationing
Sunk cost
45. Maximum price that a customer is willing to pay for a good
Tangible Assets
Businesses
Unemployment insurance
Reservation price
46. An increase in spending due to a perceived increase in wealth.
Marginal cost
The Wealth Effect
Unemployment insurance
Worker mobility
47. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Market equilibrium
Hyperinflation
Buyer's surplus
48. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Capital goods
Substitution effect
Boom
Menu cost
49. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Income
Price level
Laffer curve
50. The international sector emphasizes the ________ rate.
Inflation
Exchange
Asset
Free market