SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 .
LRAS
Equilibrium price
Reservation price
Okun's Law
2. An increase in this would cause an increase in the aggregate supply
Labor productivity
Capitalism
Unemployment insurance
Intermediate Goods
3. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Marginal benefit
Average tax rate
Stabilization policies
Complement
4. The amount of workers that are willing to work for a real wage.
Labor supply
The Wealth Effect
Equilibrium price
Inflation
5. 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.
Frictional unemployment
Law of Supply
Expansionary policies
Monopsony
6. The lowest point of the recession
Seller's reservation price
Inflation
Substitution effect
Trough
7. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Free market
Output gap
Aggregate demand
Gross Domestic Product (GDP)
8. 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).
Frictional unemployment
Seller's surplus
The Wealth Effect
Indexing
9. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Autonomous Expenditure
Relative price
Nominal GDP
10. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Capital income
Normative analysis
Planned aggregate expenditure (PAE)
Excess Supply
11. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Inflation inertia
Normative analysis
Partnership
12. 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.
The principle of efficiency
The real GDP per person
Law of Demand
Marginal cost
13. A measure of overall price levels at a specific point in the price index.
Average tax rate
Automatic stabilizers
Price level
Intermediate goods
14. When an economic unit makes more than it spends
The rate of inflation
Short run equilibrium output
Saving
Corporation
15. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fisher effect
Short run equilibrium output
Inflation
Mixed market
16. The adding up of individual economic variables to obtain a large - general picture of the economy.
Capitalism
Aggregation
Automatic stabilizers
Indexing
17. Organizations that act as moderators between employers and employees
Velocity
Labor unions
Economic efficiency
Gross Domestic Product (GDP)
18. The output per employed worker
Capital income
Labor productivity
Market equilibrium
Tangible Assets
19. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Intermediate Goods
Relative price
Gross National Product (GNP)
Aggregate supply shock
20. The rise in taxes that occurs when before-tax income increases by one dollar
Command economic system
Macroeconomics
Marginal tax rate
Inflation shock
21. The level of output where output equals planned aggregate expenditure
Short run equilibrium output
Four sectors of the economy
Aggregate demand
Frictional unemployment
22. The difference between the price received by the seller and the seller's reservation price
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
23. Patents - Goodwill - and Trademarks (lack physical substance)
Keynesian model
Real employment
Congressional budget office
Intangible Assets
24. An increase in spending due to a perceived increase in wealth.
Seller's reservation price
The Wealth Effect
Indexing
Credibility of monetary policy
25. Extreme economic growth
Okun's Law
Consumption
Boom
LRAS
26. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Core rate of inflation
Pay
Gross Domestic Product (GDP)
Economic efficiency
27. When prices fall consistently over time - leading to negative inflation.
Capitalism
Deflation
Output gap
Saving
28. 1 percent more unemployment results in 2 percent less output.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
29. The labor sector highlights the rate of ____ .
Congressional budget office
Consumption function
Pay
Okun's Law
30. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Macroeconomics
Invisible hand
Total surplus
Disinflation
31. 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.
Aggregation
Intermediate Goods
Contractionary policies
Planned aggregate expenditure (PAE)
32. The time period between a policy's implementation and its desired effects on an economy.
Cyclical unemployment
Pay
Outside lag
Intermediate goods
33. Goods that are used in the production of final goods.
Consumption function
Outside lag
Intermediate goods
Menu cost
34. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Price
Invisible hand
Law of Demand
Outside lag
35. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Disinflation
Market equilibrium
Structural policy
Substitution effect
36. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Capital goods
Socially optimal quantity
Lorenz curve
Total surplus
37. Maximum price that a customer is willing to pay for a good
Cyclical unemployment
Asset
Reservation price
Inflation
38. When people's expectations of future inflation do not change even though inflation rates change.
Macroeconomics
Anchored inflation expectations
Gross National Product (GNP)
Lorenz curve
39. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Keynesian economic theory
Disinflation
The real GDP per person
Potential output
40. Money multiplied by velocity equals nominal GDP.
Consumption function
Quantity equation
Marginal benefit
Complement
41. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
The quality adjustment bias
AD curve intersects the SAS curve
Labor productivity
decreases increases
42. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Monopsony
Capitalism
Relative price
43. The time between the need for a macroeconomic policy and its implementation
Inside lag
Output gap
Keynesian economic theory
Keynesian model
44. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Laffer curve
Recession
Tangible Assets
Labor supply
45. Government policies aimed at stabilizing the economy by eliminating output gaps
Tangible Assets
Capital goods
Stabilization policies
Businesses
46. Total tax paid divided by total (taxable) income - as a percentage.
Price
Average tax rate
Structural policy
Marginal tax rate
47. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
48. 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)
Keynesian model
Consumption
Macroeconomics
49. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Sole proprietorship
Credibility of monetary policy
Automatic stabilizers
Rationing
50. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Anchored inflation expectations
Intermediate Goods
Trough
Consumption