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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. The lowest point of the recession
Trough
Labor productivity
Reservation price
The Wealth Effect
2. Caused by changes in the overall economy.
Monopsony
Intermediate goods
Sunk cost
Cyclical unemployment
3. The relationship between disposable income and spending on consumable goods and services
Monopsony
Marginal tax rate
Relative price
Consumption function
4. When an economic unit makes more than it spends
Tangible Assets
Fractional
Saving
Substitution effect
5. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Capitalism
decreases increases
Saving
Structural policy
6. When the rate of inflation is extremely high.
Hyperinflation
Substitution bias
Fisher effect
Inflation inertia
7. 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
Deflation
Saving
Traditional economic system
8. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Inflationary gap
The real GDP per person
Economic efficiency
Structural policy
9. Unicorporated entity that has shared ownership.
Recession
Partnership
Boom
NRU
10. A policy that affects potential output
Supply-side policy
Total surplus
Exchange
Planned aggregate expenditure (PAE)
11. The beginning of a recession
Normative analysis
Income
Real GDP
Peak
12. The labor sector highlights the rate of ____ .
Pay
Inflationary gap
Lorenz curve
Inside lag
13. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Quantity equation
Complement
Average tax rate
Capital income
14. The ease with which an asset can be converted to currency.
Income
Stabilization policies
Economic efficiency
Liquidity
15. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Standard of living
The real GDP per person
The principle of efficiency
Interest
16. The adding up of individual economic variables to obtain a large - general picture of the economy.
Free market
Lorenz curve
Policy reaction function
Aggregation
17. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Reservation price
Autonomous Expenditure
Inflation
Total surplus
18. 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
Equilibrium price
Law of Diminishing Marginal Utility
The quality adjustment bias
19. An increase in spending due to a perceived increase in wealth.
Keynesian economic theory
Law of Demand
The Wealth Effect
Marginal cost
20. The monetary sector focuses on the ________ rate.
Sunk cost
Aggregate supply shock
Interest
Automatic stabilizers
21. The annual percentage rate of change in price level reflected by price indexes
Relative price
Law of Demand
The rate of inflation
Deflation
22. Government policies aimed at stabilizing the economy by eliminating output gaps
Sole proprietorship
Capital goods
Core rate of inflation
Stabilization policies
23. The time between the need for a macroeconomic policy and its implementation
Inflation shock
Inside lag
Capitalism
Price level
24. Government policies intended to increase spending and output.
Business cycle
Participation rate
Traditional economic system
Expansionary policies
25. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Short run equilibrium output
Tangible Assets
Capital income
Aggregate Supply
26. The percentage of working-age people within the labor force
Gross National Product (GNP)
Worker mobility
Mixed market
Participation rate
27. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
The rate of inflation
Substitution bias
Disinflation
Interest
28. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Inflation shock
Business cycle
Asset
29. The movement of workers between jobs - companies - and industries
Worker mobility
Expansionary policies
Hyperinflation
Inside lag
30. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Aggregate Supply
Mixed market
Command economic system
31. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Trough
Aggregate supply shock
Credibility of monetary policy
32. 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
Monetarism
Capital goods
Excess Supply
Market equilibrium
33. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Labor supply
Congressional budget office
Consumer Nondurables
Invisible hand
34. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Intermediate goods
Law of Supply
Businesses
Output gap
35. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Command economic system
Lorenz curve
Substitution effect
Congressional budget office
36. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Consumer Nondurables
Intermediate goods
Trough
Gross National Product (GNP)
37. When prices fall consistently over time - leading to negative inflation.
Business cycle
Deflation
The principle of efficiency
Interest
38. The rise in taxes that occurs when before-tax income increases by one dollar
Law of Supply
Autonomous Expenditure
Marginal tax rate
Aggregate supply
39. A large - unexpected change in the cost of resources.
Normative analysis
Invisible hand
Aggregate supply shock
Rationing
40. The basic assumption of this model is that in the short run - firms meet demand at present price.
Buyer's surplus
Substitution effect
Keynesian model
Consumption function
41. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Traditional economic system
Command economic system
Output gap
Inflation inertia
42. 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.
Keynesian model
Traditional economic system
Capital income
Excess Supply
43. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Aggregate supply
Marginal tax rate
Intangible Assets
44. Real Estate - Equipment - and Cash (physical assets)
Aggregate supply shock
Capitalism
Businesses
Tangible Assets
45. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
The Wealth Effect
Intangible Assets
Liquidity
46. The degree to which people have access to goods and services that make their lives better.
Law of Diminishing Marginal Utility
Standard of living
Cyclical unemployment
Capital income
47. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Rationing
Relative price
Normative analysis
48. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Real employment
Adam Smith
Excess Supply
Economic efficiency
49. That efficiency leads to economic prosperity for all.
The quality adjustment bias
Expansionary policies
Businesses
The principle of efficiency
50. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Labor productivity
Total surplus
Aggregate demand
Structural unemployment