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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. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Keynesian economic theory
Stabilization policies
Excess Supply
LRAS
2. Goods and services sector - Labor sector - monetary sector - international sector.
Short run equilibrium output
Inflationary gap
Four sectors of the economy
Economic efficiency
3. Patents - Goodwill - and Trademarks (lack physical substance)
Intangible Assets
Capitalism
Price level
Command economic system
4. Natural Rate of Unemployment - a rate that will always exist
Corporation
NRU
Peak
Excess Supply
5. The ease with which an asset can be converted to currency.
Liquidity
Reservation price
Autonomous Expenditure
Consumer Nondurables
6. The difference between the price received by the seller and the seller's reservation price
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7. Total supply of goods and services in an economy
Aggregate supply
Businesses
Socially optimal quantity
Consumer Nondurables
8. Business entity which legally has no separate existence from its owner.
Sole proprietorship
Consumption
AD curve intersects the SAS curve
Price level
9. When people's expectations of future inflation do not change even though inflation rates change.
Economic efficiency
Contractionary policies
Real quantity
Anchored inflation expectations
10. The time between the need for a macroeconomic policy and its implementation
Okun's Law
Free market
Short run equilibrium output
Inside lag
11. Organizations that act as moderators between employers and employees
Excess Supply
Saving
Asset
Labor unions
12. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
decreases increases
Tangible Assets
Saving
Total surplus
13. An increase in this would cause an increase in the aggregate supply
Inflationary gap
The quality adjustment bias
Labor productivity
Lorenz curve
14. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Aggregate supply shock
Okun's Law
decreases increases
Menu cost
15. Payments that the government makes to unemployed workers.
Buyer's surplus
The principle of efficiency
Unemployment insurance
Asset
16. A record of economic increases and decreases over time.
Business cycle
Free market
The real GDP per person
NRU
17. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Seller's reservation price
AD curve intersects the SAS curve
Tangible Assets
Labor productivity
18. Legal entity that has received a charter from a state or federal government.
Inflation shock
Structural unemployment
Business cycle
Corporation
19. The slow change in inflation from year to year in industrialized nations
Structural unemployment
Output gap
Consumer Nondurables
Inflation inertia
20. Unicorporated entity that has shared ownership.
Fisher effect
Labor supply
Aggregate Supply
Partnership
21. The continuing increase in the average level of prices of goods and services over time.
Inflation
decreases increases
Structural unemployment
Real employment
22. A measure of overall price levels at a specific point in the price index.
Traditional economic system
Consumption
Price level
Core rate of inflation
23. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Relative price
Short run equilibrium output
Gross National Product (GNP)
Consumption
24. The maximum amount that an economy can output over a period of time
Intermediate goods
Income
Law of Diminishing Marginal Utility
Potential output
25. Goods that are used in the production of final goods.
Inside lag
Economic efficiency
Core rate of inflation
Intermediate goods
26. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Aggregate demand
Normative analysis
Sunk cost
27. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Normative analysis
Businesses
Sunk cost
Anchored inflation expectations
28. The output per employed worker
Businesses
Labor productivity
Aggregate supply shock
Output gap
29. Government policies intended to increase spending and output.
Traditional economic system
decreases increases
Expansionary policies
Labor productivity
30. The beginning of a recession
Peak
Real quantity
Four sectors of the economy
Price level
31. The speed that money changes hands in order to buy and sell final goods and services.
Boom
Velocity
Contractionary policies
Keynesian economic theory
32. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Disinflation
Relative price
Phillips curve
33. The government office that is responsible for projecting federal surpluses and deficits
Contractionary policies
Real GDP
Congressional budget office
Keynesian model
34. Concerned with analyzing whether or not a policy should be used.
Equilibrium price
Outside lag
Short run equilibrium output
Normative analysis
35. The increase in total benefit that comes from producing one additional unit.
Partnership
Traditional economic system
Marginal benefit
Labor supply
36. When an economic unit makes more than it spends
Saving
Keynesian model
Macroeconomics
Marginal tax rate
37. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Asset
Mixed market
Sunk cost
Supply-side policy
38. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.
Intermediate goods
Law of Demand
Seller's surplus
Tangible Assets
39. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Invisible hand
Core rate of inflation
Complement
Outside lag
40. The international sector emphasizes the ________ rate.
Partnership
Exchange
decreases increases
The quality adjustment bias
41. The labor sector highlights the rate of ____ .
Pay
Mixed market
Aggregation
Price level
42. The real cost of changing a listed price.
Marginal benefit
Trough
Menu cost
Interest
43. 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
Stabilization policies
Real GDP
Frictional unemployment
Complement
44. The part of economics study that looks at the operation of a nation's economy as a whole
Consumption function
Disinflation
Macroeconomics
Pay
45. A free market system that relies on private property ownership and supply and demand
Frictional unemployment
Four sectors of the economy
Deflation
Capitalism
46. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Credibility of monetary policy
Aggregate supply shock
Gross Domestic Product (GDP)
Capital income
47. Most free-market banking systems are based on __________ reserves.
Gross Domestic Product (GDP)
Mixed market
Fractional
Buyer's surplus
48. The time period between a policy's implementation and its desired effects on an economy.
Gross National Product (GNP)
Outside lag
Structural unemployment
Laffer curve
49. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Asset
Income
Indexing
Labor productivity
50. (n) something of value; a resource; an advantage
Partnership
Asset
Aggregate demand
Boom