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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. When an economic unit makes more than it spends
Traditional economic system
Saving
Seller's surplus
Complement
2. Real Estate - Equipment - and Cash (physical assets)
Trough
Tangible Assets
Liquidity
Gross National Product (GNP)
3. The increase in total cost that comes from producing one additional unit of a specific good or service.
Adam Smith
Labor supply
Aggregate supply shock
Marginal cost
4. A Scottish man (1723-1790) who is known as the father of modern economics.
Relative price
Adam Smith
Autonomous Expenditure
Price level
5. The ease with which an asset can be converted to currency.
Relative price
Mixed market
Liquidity
Partnership
6. Extreme economic growth
Lorenz curve
Boom
Complement
Quantity equation
7. Goods that are used in the production of final goods.
Core rate of inflation
Intermediate goods
Cyclical unemployment
Potential output
8. Natural Rate of Unemployment - a rate that will always exist
Credibility of monetary policy
Keynesian model
Free market
NRU
9. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Unemployment insurance
Market equilibrium
Supply-side policy
10. Total supply of goods and services in an economy
Gross National Product (GNP)
Expansionary policies
Peak
Aggregate supply
11. 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
Real GDP
Seller's surplus
The quality adjustment bias
Corporation
12. The time between the need for a macroeconomic policy and its implementation
Inside lag
Invisible hand
Price level
Cyclical unemployment
13. The rate of price increase on all things except food and energy
Businesses
Core rate of inflation
Business cycle
Aggregate demand
14. The movement of workers between jobs - companies - and industries
Worker mobility
Participation rate
Output gap
Four sectors of the economy
15. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.
Law of Demand
Core rate of inflation
Consumer Nondurables
Law of Diminishing Marginal Utility
16. The portion of planned aggregate expenditure that is not based on output
Exchange
Unemployment insurance
Asset
Autonomous Expenditure
17. The adding up of individual economic variables to obtain a large - general picture of the economy.
Deflation
Aggregation
Disinflation
Law of Demand
18. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Velocity
Total surplus
Price
Standard of living
19. 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
Law of Demand
Lorenz curve
Monetarism
Price level
20. The amount of workers that are willing to work for a real wage.
Credibility of monetary policy
Inflation shock
Labor supply
Average tax rate
21. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Keynesian economic theory
Complement
Law of Supply
Aggregate Supply
22. That efficiency leads to economic prosperity for all.
Seller's surplus
The principle of efficiency
Seller's reservation price
Pay
23. The increase in total benefit that comes from producing one additional unit.
Business cycle
Marginal benefit
Adam Smith
Cyclical unemployment
24. The level of output where output equals planned aggregate expenditure
Hyperinflation
Capitalism
Law of Diminishing Marginal Utility
Short run equilibrium output
25. The basic assumption of this model is that in the short run - firms meet demand at present price.
Labor productivity
Intermediate Goods
Keynesian model
Trough
26. The percentage of working-age people within the labor force
Intangible Assets
Complement
Hyperinflation
Participation rate
27. Caused by changes in the overall economy.
Sunk cost
Cyclical unemployment
Aggregation
Complement
28. Used to demonstrate shifts in income distribution among a population over time.
Macroeconomics
Lorenz curve
Peak
Labor unions
29. A large - unexpected change in the cost of resources.
Gross National Product (GNP)
Mixed market
Aggregate supply shock
Normative analysis
30. Represents the governmental tax rate that will best maximize tax revenues.
Liquidity
Laffer curve
Inflationary gap
Output gap
31. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Output gap
Price level
Exchange
32. The time period between a policy's implementation and its desired effects on an economy.
Rationing
Normative analysis
Outside lag
Structural policy
33. 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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34. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Free market
Capitalism
Deflation
Gross National Product (GNP)
35. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Income
Consumption function
Price level
The real GDP per person
36. Goods and services sector - Labor sector - monetary sector - international sector.
Output gap
Quantity equation
Four sectors of the economy
Complement
37. The price of a good or service in relation to the price of other goods and services.
Structural unemployment
Contractionary policies
Equilibrium price
Relative price
38. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Normative analysis
decreases increases
Automatic stabilizers
Sole proprietorship
39. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Lorenz curve
Indexing
Inflation shock
Phillips curve
40. Money multiplied by velocity equals nominal GDP.
Consumption
Quantity equation
Intangible Assets
Seller's reservation price
41. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Expansionary policies
Marginal benefit
Aggregate demand
Phillips curve
42. Most free-market banking systems are based on __________ reserves.
Capital income
Short run equilibrium output
Fisher effect
Fractional
43. 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.
Stabilization policies
Phillips curve
Contractionary policies
Anchored inflation expectations
44. The maximum amount that an economy can output over a period of time
Potential output
Tangible Assets
Substitution effect
Indexing
45. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Keynesian economic theory
Labor productivity
Autonomous Expenditure
46. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Real GDP
AD curve intersects the SAS curve
Expansionary policies
Aggregate supply
47. The government office that is responsible for projecting federal surpluses and deficits
Congressional budget office
Credibility of monetary policy
Recession
Gross Domestic Product (GDP)
48. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Lorenz curve
Mixed market
Menu cost
Consumption
49. Goods like food and clothing that have a short lifespan.
Core rate of inflation
Socially optimal quantity
Keynesian economic theory
Consumer Nondurables
50. A policy that affects potential output
Supply-side policy
Real employment
Marginal cost
Menu cost