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 price of a good or service in relation to the price of other goods and services.
Stabilization policies
Okun's Law
Relative price
Asset
2. 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
Contractionary policies
Substitution bias
Indexing
Short run equilibrium output
3. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Aggregate supply
Businesses
Fisher effect
Peak
4. The annual percentage rate of change in price level reflected by price indexes
Standard of living
The rate of inflation
Inside lag
The quality adjustment bias
5. Government policies aimed at stabilizing the economy by eliminating output gaps
Standard of living
Congressional budget office
Real GDP
Stabilization policies
6. There is an ___________ ___ when aggregate output is above potential output
Automatic stabilizers
Gross National Product (GNP)
Businesses
Inflationary gap
7. 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
8. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Economic efficiency
Boom
Deflation
Capital goods
9. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.
Asset
Contractionary policies
Four sectors of the economy
decreases increases
10. Maximum price that a customer is willing to pay for a good
Reservation price
Capital goods
LRAS
Economic efficiency
11. The increase in total cost that comes from producing one additional unit of a specific good or service.
Fisher effect
Free market
Marginal cost
Aggregate supply shock
12. Organizations that act as moderators between employers and employees
Congressional budget office
Labor unions
Marginal tax rate
Total surplus
13. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Unemployment insurance
Inside lag
Nominal GDP
decreases increases
14. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
The principle of efficiency
Labor unions
Real quantity
15. When inflation suddenly deviates from its normal course.
Inflation shock
Boom
Aggregate supply
Labor productivity
16. The monetary sector focuses on the ________ rate.
Price
Aggregation
Four sectors of the economy
Interest
17. 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
Command economic system
Stabilization policies
Real GDP
The Wealth Effect
18. 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.
Law of Supply
Traditional economic system
Indexing
Inflation
19. The basic assumption of this model is that in the short run - firms meet demand at present price.
Participation rate
Buyer's surplus
Intangible Assets
Keynesian model
20. The degree to which people have access to goods and services that make their lives better.
Aggregate demand
Standard of living
Disinflation
Participation rate
21. 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.
Disinflation
Policy reaction function
Autonomous Expenditure
Law of Diminishing Marginal Utility
22. 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
23. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Business cycle
Aggregate supply shock
The rate of inflation
24. Goods and services sector - Labor sector - monetary sector - international sector.
Businesses
Four sectors of the economy
Autonomous Expenditure
Anchored inflation expectations
25. 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.
Monopsony
Equilibrium price
Policy reaction function
Law of Diminishing Marginal Utility
26. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Marginal benefit
Participation rate
Indexing
27. The slow change in inflation from year to year in industrialized nations
Standard of living
Inflation inertia
Law of Supply
Price
28. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Capital income
Price
Labor productivity
Consumption
29. When both producers and consumers are satisfied with their quantities at market price.
Business cycle
Potential output
Market equilibrium
Complement
30. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Substitution bias
Substitution effect
decreases increases
Peak
31. 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.
Intermediate goods
Real employment
Keynesian model
Short run equilibrium output
32. A free market system that relies on private property ownership and supply and demand
Capitalism
Supply-side policy
Marginal cost
Unemployment insurance
33. The government office that is responsible for projecting federal surpluses and deficits
Congressional budget office
Contractionary policies
Excess Supply
Reservation price
34. Represents the governmental tax rate that will best maximize tax revenues.
Traditional economic system
Inside lag
Socially optimal quantity
Laffer curve
35. 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
36. (n) something of value; a resource; an advantage
Boom
Asset
Liquidity
Average tax rate
37. The level of output where output equals planned aggregate expenditure
Short run equilibrium output
Socially optimal quantity
Corporation
Quantity equation
38. Unicorporated entity that has shared ownership.
Inside lag
Intangible Assets
Capitalism
Partnership
39. Goods that are used in the production of final goods.
Inflation
Macroeconomics
Keynesian model
Intermediate goods
40. Patents - Goodwill - and Trademarks (lack physical substance)
Adam Smith
Output gap
Price level
Intangible Assets
41. The time between the need for a macroeconomic policy and its implementation
Exchange
Credibility of monetary policy
Inside lag
Price level
42. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Socially optimal quantity
Phillips curve
The Wealth Effect
43. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Hyperinflation
Tangible Assets
Excess Supply
Cyclical unemployment
44. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Phillips curve
Autonomous Expenditure
Asset
45. Money multiplied by velocity equals nominal GDP.
Quantity equation
Indexing
Liquidity
Fractional
46. Goods not counted in the nation's GDP.
Excess Supply
Velocity
Inflationary gap
Intermediate Goods
47. The portion of planned aggregate expenditure that is not based on output
Autonomous Expenditure
Gross National Product (GNP)
Short run equilibrium output
Structural policy
48. A large - unexpected change in the cost of resources.
Aggregate supply shock
Command economic system
Intangible Assets
Labor unions
49. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Frictional unemployment
Inside lag
Liquidity
Fisher effect
50. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Consumer Nondurables
AD curve intersects the SAS curve
The quality adjustment bias
Asset