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Test your basic knowledge |
CLEP Macroeconomics - 3
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Subjects
:
clep
,
economics
Instructions:
Answer 50 questions in 15 minutes.
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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.
Marginal benefit
Okun's Law
Partnership
Normative analysis
2. A free market system that relies on private property ownership and supply and demand
Short run equilibrium output
Labor supply
Monopsony
Capitalism
3. 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
Sole proprietorship
Substitution bias
Socially optimal quantity
Hyperinflation
4. The portion of planned aggregate expenditure that is not based on output
Law of Demand
Autonomous Expenditure
Fractional
Inflation
5. There is an ___________ ___ when aggregate output is above potential output
The rate of inflation
Disinflation
Inflationary gap
Socially optimal quantity
6. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross National Product (GNP)
Aggregation
Price level
The real GDP per person
7. The basic assumption of this model is that in the short run - firms meet demand at present price.
Trough
Inflation shock
Keynesian model
Planned aggregate expenditure (PAE)
8. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Law of Demand
Inflation inertia
Substitution effect
Disinflation
9. An increase in spending due to a perceived increase in wealth.
The Wealth Effect
Capitalism
Monetarism
Supply-side policy
10. Total tax paid divided by total (taxable) income - as a percentage.
Real employment
Adam Smith
Average tax rate
Labor 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
The quality adjustment bias
Fisher effect
The principle of efficiency
12. A macroeconomic policy that directly affects the structure and various institutions of an economy
Potential output
Structural unemployment
Capital income
Structural policy
13. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Price
Indexing
The quality adjustment bias
Average tax rate
14. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Corporation
Substitution effect
Keynesian model
Okun's Law
15. Combines pure market and command. Example: Japan
Consumption
Aggregation
Mixed market
Policy reaction function
16. A large - unexpected change in the cost of resources.
Stabilization policies
Anchored inflation expectations
Consumer Nondurables
Aggregate supply shock
17. Unicorporated entity that has shared ownership.
Exchange
Saving
Seller's surplus
Partnership
18. 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.
Gross National Product (GNP)
Command economic system
Hyperinflation
Standard of living
19. The lowest point of the recession
Supply-side policy
Anchored inflation expectations
Worker mobility
Trough
20. The rate of price increase on all things except food and energy
Core rate of inflation
Partnership
Excess Supply
Inflation
21. Most free-market banking systems are based on __________ reserves.
Excess Supply
Structural policy
Total surplus
Fractional
22. Payments that the government makes to unemployed workers.
Price level
Unemployment insurance
Average tax rate
Exchange
23. 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
Lorenz curve
NRU
Monetarism
AD curve intersects the SAS curve
24. 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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25. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Complement
Marginal benefit
Peak
Disinflation
26. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Intermediate Goods
Invisible hand
Output gap
Partnership
27. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Complement
Corporation
decreases increases
28. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Quantity equation
Socially optimal quantity
Business cycle
29. A result of there only being one buyer of a resource input - good - or service.
Aggregate supply
Supply-side policy
Monopsony
Menu cost
30. 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.
Expansionary policies
Traditional economic system
Cyclical unemployment
Inflation
31. (n) something of value; a resource; an advantage
Buyer's surplus
Asset
Structural policy
Boom
32. The goods and services sector focuses largely on the level of ______ .
Indexing
Business cycle
Income
Complement
33. Maximum price that a customer is willing to pay for a good
Outside lag
Gross Domestic Product (GDP)
Reservation price
Standard of living
34. 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.
Gross Domestic Product (GDP)
Reservation price
Indexing
Disinflation
35. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Labor supply
Sunk cost
Stabilization policies
36. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Economic efficiency
Corporation
Asset
Equilibrium price
37. The time period between a policy's implementation and its desired effects on an economy.
Nominal GDP
Capital goods
Buyer's surplus
Outside lag
38. 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.
Keynesian model
Law of Diminishing Marginal Utility
AD curve intersects the SAS curve
Gross Domestic Product (GDP)
39. That efficiency leads to economic prosperity for all.
Rationing
The principle of efficiency
Marginal benefit
Aggregate supply shock
40. The level of output where output equals planned aggregate expenditure
Short run equilibrium output
Standard of living
Capitalism
Gross Domestic Product (GDP)
41. The maximum amount that an economy can output over a period of time
Menu cost
The rate of inflation
Phillips curve
Potential output
42. Business entity which legally has no separate existence from its owner.
Menu cost
Contractionary policies
Tangible Assets
Sole proprietorship
43. Real Estate - Equipment - and Cash (physical assets)
Structural unemployment
Law of Diminishing Marginal Utility
Outside lag
Tangible Assets
44. The degree to which people have access to goods and services that make their lives better.
Excess Supply
Standard of living
Mixed market
Average tax rate
45. Goods that are used in the production of final goods.
Intermediate goods
Pay
Consumer Nondurables
Exchange
46. 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
Businesses
Pay
Intermediate goods
47. The beginning of a recession
The real GDP per person
Aggregation
Peak
Aggregate supply shock
48. The international sector emphasizes the ________ rate.
Law of Diminishing Marginal Utility
Anchored inflation expectations
Liquidity
Exchange
49. Used to demonstrate shifts in income distribution among a population over time.
Inflation shock
Lorenz curve
Standard of living
Supply-side policy
50. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Cyclical unemployment
Sunk cost
Inflation
Intermediate Goods
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