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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. 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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2. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Pay
Unemployment insurance
Seller's surplus
Price
3. A macroeconomic policy that directly affects the structure and various institutions of an economy
Substitution effect
Stabilization policies
Keynesian model
Structural policy
4. The goods and services sector focuses largely on the level of ______ .
Income
Potential output
Laffer curve
Intangible Assets
5. (n) something of value; a resource; an advantage
Inflation shock
LRAS
Normative analysis
Asset
6. The continuing increase in the average level of prices of goods and services over time.
Inflation
Aggregate supply
Monopsony
Price level
7. A measure of overall price levels at a specific point in the price index.
Price level
Short run equilibrium output
Sunk cost
Aggregate demand
8. The real cost of changing a listed price.
Menu cost
Interest
Labor unions
Okun's Law
9. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Inflation shock
Corporation
LRAS
10. A Scottish man (1723-1790) who is known as the father of modern economics.
Phillips curve
Law of Demand
Congressional budget office
Adam Smith
11. A policy that affects potential output
Labor productivity
Supply-side policy
Inside lag
Substitution effect
12. 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).
Policy reaction function
Participation rate
Structural unemployment
Frictional unemployment
13. The percentage of working-age people within the labor force
Participation rate
Income
Peak
Laffer curve
14. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Stabilization policies
Real quantity
Businesses
Velocity
15. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Structural policy
Economic efficiency
Real GDP
Interest
16. 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.
Equilibrium price
Buyer's surplus
AD curve intersects the SAS curve
Inside lag
17. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Seller's surplus
Law of Diminishing Marginal Utility
Excess Supply
Traditional economic system
18. Real Estate - Equipment - and Cash (physical assets)
Real employment
Trough
Liquidity
Tangible Assets
19. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Mixed market
The quality adjustment bias
Socially optimal quantity
Autonomous Expenditure
20. When the people believe that the nation's central bank will keep inflation rates low.
decreases increases
Credibility of monetary policy
Contractionary policies
Complement
21. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Worker mobility
Businesses
Aggregate Supply
Real quantity
22. Combines pure market and command. Example: Japan
Velocity
The real GDP per person
Mixed market
Tangible Assets
23. The increase in total cost that comes from producing one additional unit of a specific good or service.
Inflation
Monetarism
Intermediate Goods
Marginal cost
24. 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.
Command economic system
Labor productivity
Output gap
Aggregate supply shock
25. Total tax paid divided by total (taxable) income - as a percentage.
Inflation inertia
Macroeconomics
Consumption
Average tax rate
26. The total value of goods and services produced in a country valued at current prices.
Inflation shock
Labor productivity
Reservation price
Nominal GDP
27. When prices fall consistently over time - leading to negative inflation.
Intermediate Goods
Aggregate supply
Deflation
Phillips curve
28. The level of output where output equals planned aggregate expenditure
Short run equilibrium output
Participation rate
Marginal benefit
Boom
29. The difference between the price received by the seller and the seller's reservation price
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30. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
The real GDP per person
NRU
Free market
Real employment
31. 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
Indexing
Marginal tax rate
Intermediate goods
Monetarism
32. The speed that money changes hands in order to buy and sell final goods and services.
Frictional unemployment
Seller's surplus
Velocity
Macroeconomics
33. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Free market
Rationing
Structural policy
34. 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.
Law of Diminishing Marginal Utility
LRAS
Capital goods
Intangible Assets
35. The part of economics study that looks at the operation of a nation's economy as a whole
Sole proprietorship
Buyer's surplus
Inside lag
Macroeconomics
36. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Trough
Liquidity
Phillips curve
Inflation inertia
37. Maximum price that a customer is willing to pay for a good
Gross Domestic Product (GDP)
Four sectors of the economy
Outside lag
Reservation price
38. Payments that the government makes to unemployed workers.
Stabilization policies
Pay
Unemployment insurance
The real GDP per person
39. That efficiency leads to economic prosperity for all.
Partnership
The principle of efficiency
Contractionary policies
Aggregate supply
40. Natural Rate of Unemployment - a rate that will always exist
Real employment
Autonomous Expenditure
NRU
Frictional unemployment
41. The maximum amount that an economy can output over a period of time
Potential output
LRAS
Aggregate supply shock
Pay
42. Business entity which legally has no separate existence from its owner.
Structural policy
Sole proprietorship
Unemployment insurance
Total surplus
43. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Law of Demand
Fisher effect
Lorenz curve
Structural policy
44. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Complement
Potential output
Equilibrium price
Phillips curve
45. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Seller's reservation price
Four sectors of the economy
Unemployment insurance
46. An increase in spending due to a perceived increase in wealth.
Real GDP
Intermediate goods
Pay
The Wealth Effect
47. 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
Monetarism
Tangible Assets
decreases increases
Real GDP
48. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Equilibrium price
Quantity equation
Aggregate supply
49. 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
Marginal benefit
Substitution bias
Consumption
Capital goods
50. Used to demonstrate shifts in income distribution among a population over time.
The principle of efficiency
Structural unemployment
Lorenz curve
Buyer's surplus