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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. Unicorporated entity that has shared ownership.
Average tax rate
Real employment
Labor productivity
Partnership
2. 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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3. 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).
Frictional unemployment
Aggregate supply shock
Labor unions
Intermediate Goods
4. The difference between the price received by the seller and the seller's reservation price
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5. A record of economic increases and decreases over time.
Capital income
Business cycle
Monopsony
Mixed market
6. The annual percentage rate of change in price level reflected by price indexes
Mixed market
Law of Diminishing Marginal Utility
Peak
The rate of inflation
7. 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.
LRAS
Real employment
Aggregate supply shock
Inflationary gap
8. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Inside lag
Rationing
Pay
Inflation
9. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Seller's reservation price
Economic efficiency
Sunk cost
Labor unions
10. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Standard of living
Velocity
Capitalism
11. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Phillips curve
Autonomous Expenditure
Recession
The real GDP per person
12. Caused by changes in the overall economy.
Cyclical unemployment
Anchored inflation expectations
AD curve intersects the SAS curve
Four sectors of the economy
13. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Real employment
The quality adjustment bias
Consumption function
14. The level of output where output equals planned aggregate expenditure
Buyer's surplus
Policy reaction function
Short run equilibrium output
Labor supply
15. The lowest point of the recession
Boom
Trough
Labor productivity
Income
16. 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.
Expansionary policies
Short run equilibrium output
Peak
Command economic system
17. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Indexing
Monopsony
Marginal cost
Gross National Product (GNP)
18. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Anchored inflation expectations
Output gap
Law of Supply
LRAS
19. Describes how the economy directly effects the actions policymakers take.
Structural unemployment
Equilibrium price
Economic efficiency
Policy reaction function
20. Business entity which legally has no separate existence from its owner.
Income
Exchange
Sole proprietorship
Intermediate goods
21. The output per employed worker
Policy reaction function
Structural unemployment
Fisher effect
Labor productivity
22. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Saving
Participation rate
Seller's surplus
23. The relationship between disposable income and spending on consumable goods and services
Gross Domestic Product (GDP)
Consumption function
Trough
Capital income
24. The percentage of working-age people within the labor force
Participation rate
Businesses
Inside lag
Quantity equation
25. 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.
Liquidity
Corporation
Gross Domestic Product (GDP)
Labor supply
26. 1 percent more unemployment results in 2 percent less output.
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27. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Tangible Assets
decreases increases
Businesses
28. 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
Aggregation
Monetarism
Marginal benefit
Invisible hand
29. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Labor supply
Monetarism
Recession
Aggregate Supply
30. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Keynesian model
Keynesian economic theory
Fisher effect
Price level
31. 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.
Laffer curve
Seller's surplus
Real GDP
Law of Supply
32. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
Inflation shock
Labor supply
Marginal cost
33. 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.
Intangible Assets
Fractional
Tangible Assets
Automatic stabilizers
34. The rise in taxes that occurs when before-tax income increases by one dollar
Corporation
Marginal tax rate
Excess Supply
Invisible hand
35. Total tax paid divided by total (taxable) income - as a percentage.
Anchored inflation expectations
Price level
Law of Supply
Average tax rate
36. Payments that the government makes to unemployed workers.
Normative analysis
Indexing
Consumption
Unemployment insurance
37. The monetary sector focuses on the ________ rate.
Keynesian model
Equilibrium price
Interest
Command economic system
38. When the people believe that the nation's central bank will keep inflation rates low.
The real GDP per person
Credibility of monetary policy
Supply-side policy
Lorenz curve
39. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Price level
Complement
Monopsony
Sunk cost
40. Goods not counted in the nation's GDP.
Indexing
Capitalism
Intermediate Goods
Interest
41. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Disinflation
Labor unions
Free market
Keynesian economic theory
42. The increase in total cost that comes from producing one additional unit of a specific good or service.
Equilibrium price
Policy reaction function
Exchange
Marginal cost
43. Most free-market banking systems are based on __________ reserves.
Fractional
Gross National Product (GNP)
decreases increases
Reservation price
44. The goods and services sector focuses largely on the level of ______ .
The principle of efficiency
Income
NRU
Real GDP
45. The time between the need for a macroeconomic policy and its implementation
The real GDP per person
Laffer curve
Rationing
Inside lag
46. When the rate of inflation is extremely high.
Command economic system
Okun's Law
Hyperinflation
Seller's surplus
47. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Nominal GDP
The real GDP per person
Short run equilibrium output
48. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Mixed market
Normative analysis
Real quantity
Consumption
49. A result of there only being one buyer of a resource input - good - or service.
Monopsony
Seller's surplus
Capitalism
Congressional budget office
50. The rate of price increase on all things except food and energy
Fisher effect
Aggregation
Boom
Core rate of inflation