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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. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Free market
Aggregate Supply
Phillips curve
2. A measure of overall price levels at a specific point in the price index.
Aggregate demand
Cyclical unemployment
Phillips curve
Price level
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
Disinflation
Substitution bias
Congressional budget office
Monopsony
4. Business entity which legally has no separate existence from its owner.
Business cycle
Sole proprietorship
The rate of inflation
Peak
5. A result of there only being one buyer of a resource input - good - or service.
Congressional budget office
Seller's surplus
Monopsony
Aggregation
6. The annual percentage rate of change in price level reflected by price indexes
Liquidity
Command economic system
Autonomous Expenditure
The rate of inflation
7. The time period between a policy's implementation and its desired effects on an economy.
The rate of inflation
Planned aggregate expenditure (PAE)
Outside lag
Stabilization policies
8. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Expansionary policies
Businesses
Phillips curve
9. Most free-market banking systems are based on __________ reserves.
Labor supply
Fractional
Tangible Assets
Unemployment insurance
10. That efficiency leads to economic prosperity for all.
The principle of efficiency
Labor productivity
Boom
Indexing
11. The amount of workers that are willing to work for a real wage.
Labor supply
Normative analysis
Price level
Law of Diminishing Marginal Utility
12. Government policies intended to increase spending and output.
Expansionary policies
NRU
Labor supply
Interest
13. 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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14. A policy that affects potential output
Monopsony
Seller's surplus
The quality adjustment bias
Supply-side policy
15. 1 percent more unemployment results in 2 percent less output.
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16. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Buyer's surplus
Participation rate
Exchange
17. Organizations that act as moderators between employers and employees
Labor unions
Traditional economic system
Business cycle
Average tax rate
18. The lowest point of the recession
Mixed market
Menu cost
Trough
NRU
19. Goods and services sector - Labor sector - monetary sector - international sector.
Boom
Corporation
Unemployment insurance
Four sectors of the economy
20. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Hyperinflation
Autonomous Expenditure
Complement
Corporation
21. The portion of planned aggregate expenditure that is not based on output
Indexing
The real GDP per person
Autonomous Expenditure
Gross National Product (GNP)
22. When an economic unit makes more than it spends
Saving
Real quantity
Supply-side policy
Lorenz curve
23. Total supply of goods and services in an economy
Inflation shock
Consumption function
Aggregate supply
Labor unions
24. A quantity that is measured in real terms - the actual quantity of a good or service
Core rate of inflation
Price
Aggregate supply
Real quantity
25. The real cost of changing a listed price.
Menu cost
Structural unemployment
Trough
Supply-side policy
26. 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.
Four sectors of the economy
Velocity
Boom
Contractionary policies
27. A record of economic increases and decreases over time.
Business cycle
Socially optimal quantity
Labor supply
Planned aggregate expenditure (PAE)
28. 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
The Wealth Effect
Quantity equation
Sunk cost
29. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Supply-side policy
Nominal GDP
Aggregate supply
30. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Pay
Autonomous Expenditure
AD curve intersects the SAS curve
Aggregate demand
31. An increase in this would cause an increase in the aggregate supply
Standard of living
Seller's surplus
Aggregate supply
Labor productivity
32. The percentage of working-age people within the labor force
Law of Demand
Outside lag
Participation rate
Nominal GDP
33. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Seller's surplus
Equilibrium price
Monetarism
Structural unemployment
34. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Corporation
Planned aggregate expenditure (PAE)
Sunk cost
Output gap
35. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Inside lag
Supply-side policy
Free market
36. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Real employment
Marginal tax rate
Seller's surplus
37. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Short run equilibrium output
Inflation
AD curve intersects the SAS curve
Capitalism
38. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Price
Aggregate Supply
Marginal tax rate
Sunk cost
39. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Seller's surplus
Laffer curve
Hyperinflation
Substitution effect
40. The international sector emphasizes the ________ rate.
Total surplus
Exchange
Marginal benefit
Liquidity
41. (n) something of value; a resource; an advantage
Socially optimal quantity
Asset
Average tax rate
Sunk cost
42. The degree to which people have access to goods and services that make their lives better.
Standard of living
NRU
Cyclical unemployment
Keynesian model
43. Legal entity that has received a charter from a state or federal government.
Hyperinflation
Worker mobility
Excess Supply
Corporation
44. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Gross National Product (GNP)
decreases increases
The quality adjustment bias
Stabilization policies
45. The maximum amount that an economy can output over a period of time
Asset
Equilibrium price
Keynesian model
Potential output
46. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Menu cost
Boom
Socially optimal quantity
Credibility of monetary policy
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
Business cycle
Law of Supply
Mixed market
Real GDP
48. The labor sector highlights the rate of ____ .
AD curve intersects the SAS curve
Pay
Output gap
Recession
49. Patents - Goodwill - and Trademarks (lack physical substance)
Intangible Assets
Aggregation
Economic efficiency
Congressional budget office
50. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
The quality adjustment bias
Unemployment insurance
Economic efficiency