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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. When the rate of inflation is extremely high.
Consumption
Disinflation
Normative analysis
Hyperinflation
2. 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.
Quantity equation
Equilibrium price
Congressional budget office
Fisher effect
3. A quantity that is measured in real terms - the actual quantity of a good or service
Peak
Output gap
Real quantity
Aggregate supply
4. Business entity which legally has no separate existence from its owner.
Sole proprietorship
Inflation shock
Seller's surplus
Inflationary gap
5. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Seller's reservation price
Participation rate
Supply-side policy
Phillips curve
6. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Excess Supply
AD curve intersects the SAS curve
Reservation price
Congressional budget office
7. The real cost of changing a listed price.
Socially optimal quantity
Equilibrium price
Menu cost
Supply-side policy
8. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Anchored inflation expectations
Consumption
Keynesian model
9. The difference between the price received by the seller and the seller's reservation price
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10. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Buyer's surplus
Unemployment insurance
Planned aggregate expenditure (PAE)
Economic efficiency
11. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Exchange
Expansionary policies
Marginal benefit
Substitution effect
12. 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.
Law of Supply
Deflation
Seller's surplus
Rationing
13. The continuing increase in the average level of prices of goods and services over time.
NRU
Lorenz curve
Inflation
Intermediate goods
14. An increase in this would cause an increase in the aggregate supply
Structural unemployment
Labor productivity
decreases increases
Socially optimal quantity
15. The movement of workers between jobs - companies - and industries
Inflation shock
Real quantity
Worker mobility
Equilibrium price
16. 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.
Law of Demand
Excess Supply
Phillips curve
Traditional economic system
17. 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.
Contractionary policies
Peak
Equilibrium price
Real GDP
18. 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).
Quantity equation
Macroeconomics
Frictional unemployment
Aggregate supply shock
19. The increase in total benefit that comes from producing one additional unit.
Relative price
Consumer Nondurables
Consumption
Marginal benefit
20. The amount of workers that are willing to work for a real wage.
Short run equilibrium output
Complement
Seller's surplus
Labor supply
21. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Inside lag
Stabilization policies
Velocity
Capital income
22. The maximum amount that an economy can output over a period of time
Automatic stabilizers
Sunk cost
Partnership
Potential output
23. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Liquidity
Sunk cost
Worker mobility
Seller's reservation price
24. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
NRU
Supply-side policy
Businesses
25. The goods and services sector focuses largely on the level of ______ .
Aggregate Supply
Income
Command economic system
Core rate of inflation
26. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Participation rate
Law of Diminishing Marginal Utility
Income
27. Goods that are used in the production of final goods.
Intermediate goods
Labor productivity
Participation rate
NRU
28. The beginning of a recession
Aggregate demand
Peak
Asset
Contractionary policies
29. The relationship between disposable income and spending on consumable goods and services
Capital income
Consumption function
Macroeconomics
Complement
30. The rate of price increase on all things except food and energy
Credibility of monetary policy
Inside lag
Core rate of inflation
Worker mobility
31. The time between the need for a macroeconomic policy and its implementation
Output gap
Structural unemployment
Relative price
Inside lag
32. An increase in spending due to a perceived increase in wealth.
Fractional
The Wealth Effect
Law of Supply
Planned aggregate expenditure (PAE)
33. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Normative analysis
Businesses
Congressional budget office
Participation rate
34. Government policies intended to increase spending and output.
Inflation shock
Contractionary policies
Expansionary policies
Buyer's surplus
35. Organizations that act as moderators between employers and employees
Intermediate goods
Socially optimal quantity
Capitalism
Labor unions
36. Unicorporated entity that has shared ownership.
Okun's Law
Aggregate supply shock
Intangible Assets
Partnership
37. The output per employed worker
Intermediate goods
Total surplus
Peak
Labor productivity
38. The ease with which an asset can be converted to currency.
decreases increases
Command economic system
Real employment
Liquidity
39. When prices fall consistently over time - leading to negative inflation.
Worker mobility
Supply-side policy
decreases increases
Deflation
40. Payments that the government makes to unemployed workers.
Exchange
Unemployment insurance
Core rate of inflation
Socially optimal quantity
41. Caused by changes in the overall economy.
Cyclical unemployment
Disinflation
Liquidity
Boom
42. The international sector emphasizes the ________ rate.
Menu cost
Total surplus
Exchange
Capitalism
43. 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.
Interest
Aggregate Supply
Law of Diminishing Marginal Utility
Short run equilibrium output
44. A free market system that relies on private property ownership and supply and demand
Pay
Intangible Assets
Capitalism
Phillips curve
45. A measure of overall price levels at a specific point in the price index.
Aggregation
Price level
Invisible hand
Saving
46. Patents - Goodwill - and Trademarks (lack physical substance)
The rate of inflation
Consumption function
Real quantity
Intangible Assets
47. Maximum price that a customer is willing to pay for a good
Reservation price
Economic efficiency
Income
The Wealth Effect
48. The monetary sector focuses on the ________ rate.
Exchange
Interest
Expansionary policies
Outside lag
49. The government office that is responsible for projecting federal surpluses and deficits
Aggregate supply
Labor supply
Income
Congressional budget office
50. 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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