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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. Payments that the government makes to unemployed workers.
Congressional budget office
The real GDP per person
The quality adjustment bias
Unemployment insurance
2. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
AD curve intersects the SAS curve
Substitution effect
Laffer curve
Marginal benefit
3. The beginning of a recession
Cyclical unemployment
Buyer's surplus
Peak
Quantity equation
4. A result of there only being one buyer of a resource input - good - or service.
Buyer's surplus
Excess Supply
Monopsony
Potential output
5. When the people believe that the nation's central bank will keep inflation rates low.
Expansionary policies
Credibility of monetary policy
Complement
LRAS
6. 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.
Standard of living
Aggregate supply
Short run equilibrium output
Command economic system
7. Goods that are used in the production of final goods.
Reservation price
Adam Smith
Intermediate goods
Deflation
8. The basic assumption of this model is that in the short run - firms meet demand at present price.
Command economic system
Keynesian model
Fractional
Credibility of monetary policy
9. Goods like food and clothing that have a short lifespan.
Contractionary policies
Aggregation
Equilibrium price
Consumer Nondurables
10. Total supply of goods and services in an economy
The real GDP per person
Total surplus
Aggregate supply
Socially optimal quantity
11. The labor sector highlights the rate of ____ .
Congressional budget office
Traditional economic system
Unemployment insurance
Pay
12. Natural Rate of Unemployment - a rate that will always exist
Complement
NRU
Buyer's surplus
The principle of efficiency
13. Concerned with analyzing whether or not a policy should be used.
decreases increases
Four sectors of the economy
Normative analysis
The Wealth Effect
14. A record of economic increases and decreases over time.
Business cycle
Structural unemployment
Monetarism
Deflation
15. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Capitalism
Complement
Real employment
Disinflation
16. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Exchange
Stabilization policies
Nominal GDP
17. Used to demonstrate shifts in income distribution among a population over time.
Real employment
Lorenz curve
Interest
Corporation
18. Patents - Goodwill - and Trademarks (lack physical substance)
Intangible Assets
Menu cost
Marginal tax rate
Keynesian economic theory
19. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Inflation
Law of Demand
Real employment
20. The time between the need for a macroeconomic policy and its implementation
Anchored inflation expectations
Traditional economic system
Inside lag
Keynesian economic theory
21. The government office that is responsible for projecting federal surpluses and deficits
LRAS
Keynesian economic theory
Partnership
Congressional budget office
22. Goods not counted in the nation's GDP.
Frictional unemployment
Intermediate Goods
Intangible Assets
The rate of inflation
23. 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.
Quantity equation
The quality adjustment bias
Aggregate supply
Law of Diminishing Marginal Utility
24. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Recession
Capitalism
Relative price
25. 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
Substitution bias
Reservation price
Automatic stabilizers
Macroeconomics
26. A large - unexpected change in the cost of resources.
Capitalism
The real GDP per person
Aggregate supply shock
Consumption
27. 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.
Automatic stabilizers
Aggregate supply
Average tax rate
Consumption function
28. A policy that affects potential output
Pay
Supply-side policy
Substitution effect
Cyclical unemployment
29. The level of output where output equals planned aggregate expenditure
Socially optimal quantity
Labor productivity
Short run equilibrium output
Consumption
30. When the rate of inflation is extremely high.
Marginal benefit
Hyperinflation
Potential output
Liquidity
31. The increase in total benefit that comes from producing one additional unit.
Substitution bias
Marginal benefit
NRU
Adam Smith
32. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Invisible hand
Labor productivity
Gross National Product (GNP)
Sunk cost
33. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Labor productivity
AD curve intersects the SAS curve
Laffer curve
Unemployment insurance
34. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Recession
Lorenz curve
Aggregation
Menu cost
35. The degree to which people have access to goods and services that make their lives better.
Real GDP
Marginal benefit
Lorenz curve
Standard of living
36. Goods and services sector - Labor sector - monetary sector - international sector.
Asset
Marginal benefit
Law of Demand
Four sectors of the economy
37. The adding up of individual economic variables to obtain a large - general picture of the economy.
Aggregation
Substitution bias
Gross National Product (GNP)
Credibility of monetary policy
38. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fisher effect
Price
Corporation
Short run equilibrium output
39. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Sole proprietorship
Price level
Keynesian model
40. 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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41. Government policies intended to increase spending and output.
Labor productivity
Standard of living
Expansionary policies
Businesses
42. 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.
Rationing
Seller's reservation price
Law of Supply
Buyer's surplus
43. A free market system that relies on private property ownership and supply and demand
Contractionary policies
Labor supply
Capitalism
Seller's surplus
44. A measure of overall price levels at a specific point in the price index.
Four sectors of the economy
Recession
Price level
Aggregate supply shock
45. 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
The Wealth Effect
Cyclical unemployment
Normative analysis
46. Organizations that act as moderators between employers and employees
Law of Demand
Average tax rate
Asset
Labor unions
47. 1 percent more unemployment results in 2 percent less output.
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48. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Real employment
Substitution effect
Reservation price
49. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Labor productivity
Supply-side policy
Businesses
Gross Domestic Product (GDP)
50. 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.
Interest
Law of Diminishing Marginal Utility
Gross Domestic Product (GDP)
Liquidity