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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. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Macroeconomics
Buyer's surplus
Velocity
2. Maximum price that a customer is willing to pay for a good
Marginal tax rate
Inside lag
Substitution bias
Reservation price
3. 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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4. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Anchored inflation expectations
Rationing
Excess Supply
Keynesian model
5. 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.
The principle of efficiency
Intermediate Goods
Equilibrium price
Tangible Assets
6. A large - unexpected change in the cost of resources.
Labor productivity
Aggregate supply shock
Capital income
Hyperinflation
7. The difference between the price received by the seller and the seller's reservation price
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8. A policy that affects potential output
Participation rate
Outside lag
Supply-side policy
NRU
9. The total value of goods and services produced in a country valued at current prices.
Four sectors of the economy
Socially optimal quantity
Laffer curve
Nominal GDP
10. 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.
Mixed market
Law of Supply
Frictional unemployment
Supply-side policy
11. 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
Liquidity
Marginal tax rate
The rate of inflation
Monetarism
12. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Traditional economic system
Pay
Fisher effect
Equilibrium price
13. An increase in this would cause an increase in the aggregate supply
Labor productivity
Partnership
The rate of inflation
Inflation
14. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Inflation
Economic efficiency
Socially optimal quantity
Outside lag
15. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Aggregate supply shock
Output gap
Peak
Total surplus
16. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Real GDP
Hyperinflation
Indexing
Mixed market
17. The basic assumption of this model is that in the short run - firms meet demand at present price.
Real employment
The real GDP per person
Corporation
Keynesian model
18. A Scottish man (1723-1790) who is known as the father of modern economics.
Tangible Assets
Consumption
Adam Smith
Capital goods
19. The increase in total cost that comes from producing one additional unit of a specific good or service.
Seller's surplus
Lorenz curve
Marginal cost
Total surplus
20. 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
Real quantity
Businesses
Deflation
Substitution bias
21. Used to demonstrate shifts in income distribution among a population over time.
Command economic system
Lorenz curve
Equilibrium price
Structural unemployment
22. Concerned with analyzing whether or not a policy should be used.
Credibility of monetary policy
Normative analysis
Interest
Intangible Assets
23. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Labor unions
Consumer Nondurables
Excess Supply
24. The lowest point of the recession
Stabilization policies
Potential output
Trough
Mixed market
25. The output per employed worker
Labor productivity
Equilibrium price
Capital income
Normative analysis
26. 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.
Supply-side policy
Structural policy
Contractionary policies
Relative price
27. Extreme economic growth
Consumption function
Pay
Intermediate Goods
Boom
28. (n) something of value; a resource; an advantage
Businesses
Potential output
Inflationary gap
Asset
29. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Sole proprietorship
Indexing
Income
30. Goods and services sector - Labor sector - monetary sector - international sector.
Saving
Unemployment insurance
Four sectors of the economy
Credibility of monetary policy
31. Goods like food and clothing that have a short lifespan.
Market equilibrium
Consumer Nondurables
Unemployment insurance
Participation rate
32. The percentage of working-age people within the labor force
Law of Demand
Consumer Nondurables
Participation rate
Aggregate Supply
33. A macroeconomic policy that directly affects the structure and various institutions of an economy
Monetarism
Structural policy
Mixed market
Reservation price
34. Caused by changes in the overall economy.
Cyclical unemployment
Aggregate supply shock
Labor productivity
Structural policy
35. A quantity that is measured in real terms - the actual quantity of a good or service
Equilibrium price
Price
Real quantity
Anchored inflation expectations
36. Goods that are used in the production of final goods.
Invisible hand
Monopsony
Intermediate goods
The quality adjustment bias
37. Goods not counted in the nation's GDP.
Recession
Intermediate Goods
Output gap
Core rate of inflation
38. The price of a good or service in relation to the price of other goods and services.
Businesses
Peak
Relative price
Invisible hand
39. Payments that the government makes to unemployed workers.
Hyperinflation
Real GDP
Unemployment insurance
Real employment
40. Legal entity that has received a charter from a state or federal government.
Short run equilibrium output
Consumer Nondurables
Command economic system
Corporation
41. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Rationing
The principle of efficiency
AD curve intersects the SAS curve
42. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
The principle of efficiency
Aggregate Supply
Unemployment insurance
Gross Domestic Product (GDP)
43. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Aggregate Supply
Capital income
Normative analysis
44. The increase in total benefit that comes from producing one additional unit.
Businesses
Marginal benefit
Aggregate demand
Invisible hand
45. The adding up of individual economic variables to obtain a large - general picture of the economy.
Aggregation
Inflation
Lorenz curve
Real employment
46. Total tax paid divided by total (taxable) income - as a percentage.
Intermediate Goods
Peak
Real quantity
Average tax rate
47. Represents the governmental tax rate that will best maximize tax revenues.
Planned aggregate expenditure (PAE)
Recession
Peak
Laffer curve
48. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Planned aggregate expenditure (PAE)
Credibility of monetary policy
Output gap
Fisher effect
49. 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.
Income
Market equilibrium
Law of Diminishing Marginal Utility
Partnership
50. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Intermediate goods
Marginal tax rate
Equilibrium price