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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. The increase in total benefit that comes from producing one additional unit.
Contractionary policies
Saving
Marginal benefit
Equilibrium price
2. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Automatic stabilizers
Relative price
Consumption
Intangible Assets
3. The difference between the price received by the seller and the seller's reservation price
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4. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Inside lag
Quantity equation
Planned aggregate expenditure (PAE)
5. 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.
Excess Supply
Real employment
Keynesian model
Consumption function
6. The goods and services sector focuses largely on the level of ______ .
Frictional unemployment
Income
Partnership
Inflation
7. Unicorporated entity that has shared ownership.
decreases increases
Unemployment insurance
Partnership
Aggregation
8. Used to demonstrate shifts in income distribution among a population over time.
Quantity equation
Corporation
Short run equilibrium output
Lorenz curve
9. 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
Complement
Recession
Interest
Real GDP
10. Goods not counted in the nation's GDP.
Interest
Nominal GDP
Aggregate demand
Intermediate Goods
11. The time between the need for a macroeconomic policy and its implementation
Aggregate supply shock
Inside lag
Congressional budget office
Economic efficiency
12. That efficiency leads to economic prosperity for all.
The principle of efficiency
Sole proprietorship
Short run equilibrium output
Businesses
13. The degree to which people have access to goods and services that make their lives better.
Consumption function
Keynesian economic theory
Standard of living
Recession
14. When the rate of inflation is extremely high.
Gross Domestic Product (GDP)
Relative price
The principle of efficiency
Hyperinflation
15. The part of economics study that looks at the operation of a nation's economy as a whole
Core rate of inflation
Macroeconomics
Relative price
Marginal tax rate
16. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Monetarism
The principle of efficiency
AD curve intersects the SAS curve
Inflation
17. When the people believe that the nation's central bank will keep inflation rates low.
NRU
Expansionary policies
Traditional economic system
Credibility of monetary policy
18. A free market system that relies on private property ownership and supply and demand
Gross National Product (GNP)
Capital income
Inflation inertia
Capitalism
19. The total planned spending on final goods and services.
Aggregate supply
Planned aggregate expenditure (PAE)
Interest
Seller's surplus
20. 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.
Inflation
Business cycle
Automatic stabilizers
Aggregate demand
21. 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.
Invisible hand
Congressional budget office
Law of Diminishing Marginal Utility
Capital goods
22. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Normative analysis
Complement
Aggregate Supply
Sole proprietorship
23. The rate of price increase on all things except food and energy
The quality adjustment bias
Aggregate Supply
Inflation shock
Core rate of inflation
24. Total tax paid divided by total (taxable) income - as a percentage.
Seller's surplus
The principle of efficiency
Average tax rate
Fisher effect
25. The real cost of changing a listed price.
Okun's Law
Relative price
Aggregate demand
Menu cost
26. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Rationing
Inflation
Average tax rate
27. The speed that money changes hands in order to buy and sell final goods and services.
Asset
Inflation
Inside lag
Velocity
28. A large - unexpected change in the cost of resources.
Fisher effect
Keynesian economic theory
Adam Smith
Aggregate supply shock
29. The labor sector highlights the rate of ____ .
Law of Supply
Pay
Standard of living
NRU
30. 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
Labor productivity
Saving
Seller's reservation price
Monetarism
31. The international sector emphasizes the ________ rate.
Policy reaction function
Relative price
Monopsony
Exchange
32. Natural Rate of Unemployment - a rate that will always exist
Business cycle
NRU
Market equilibrium
Stabilization policies
33. The amount of workers that are willing to work for a real wage.
Relative price
Rationing
Real GDP
Labor supply
34. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Income
Keynesian economic theory
Consumption
Marginal cost
35. The beginning of a recession
Real quantity
Nominal GDP
Peak
Inside lag
36. Used in the production of final goods - but instead of being consumed - are available for reuse.
The Wealth Effect
Expansionary policies
Capital goods
Aggregate demand
37. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Price
Capital goods
Structural unemployment
Consumption function
38. Real Estate - Equipment - and Cash (physical assets)
Seller's surplus
Aggregate demand
Tangible Assets
Capital goods
39. When inflation suddenly deviates from its normal course.
Fractional
Inflation shock
The rate of inflation
Law of Diminishing Marginal Utility
40. The lowest point of the recession
Market equilibrium
Trough
Peak
Deflation
41. A policy that affects potential output
Okun's Law
Aggregation
Inflationary gap
Supply-side policy
42. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Keynesian economic theory
Inflationary gap
Pay
43. When an economic unit makes more than it spends
Complement
Saving
Business cycle
Keynesian economic theory
44. The level of output where output equals planned aggregate expenditure
Autonomous Expenditure
Sunk cost
Short run equilibrium output
NRU
45. The increase in total cost that comes from producing one additional unit of a specific good or service.
Gross Domestic Product (GDP)
Marginal cost
Automatic stabilizers
Expansionary policies
46. Goods and services sector - Labor sector - monetary sector - international sector.
NRU
Four sectors of the economy
Exchange
Nominal GDP
47. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.
Adam Smith
Law of Diminishing Marginal Utility
Frictional unemployment
Traditional economic system
48. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Price level
Substitution effect
Supply-side policy
Aggregate supply shock
49. The maximum amount that an economy can output over a period of time
Structural unemployment
Potential output
Capital goods
Labor unions
50. When both producers and consumers are satisfied with their quantities at market price.
Mixed market
Expansionary policies
Market equilibrium
Interest