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. The annual percentage rate of change in price level reflected by price indexes
The principle of efficiency
The rate of inflation
Inflationary gap
Average tax rate
2. 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
Free market
Deflation
Seller's reservation price
Monetarism
3. Goods that are used in the production of final goods.
Intermediate goods
Stabilization policies
AD curve intersects the SAS curve
Saving
4. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.
Real employment
Core rate of inflation
Okun's Law
Intermediate goods
5. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Automatic stabilizers
Price
Labor productivity
Consumption
6. The degree to which people have access to goods and services that make their lives better.
Standard of living
Labor supply
Average tax rate
Inside lag
7. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Capitalism
Labor unions
Socially optimal quantity
Consumption
8. A record of economic increases and decreases over time.
Saving
Deflation
Exchange
Business cycle
9. When both producers and consumers are satisfied with their quantities at market price.
The Wealth Effect
Market equilibrium
Intangible Assets
Pay
10. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
The Wealth Effect
Aggregate Supply
Exchange
Inside lag
11. The level of output where output equals planned aggregate expenditure
Intermediate Goods
Nominal GDP
Sole proprietorship
Short run equilibrium output
12. 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
Adam Smith
Pay
Real quantity
13. The government office that is responsible for projecting federal surpluses and deficits
Seller's reservation price
Congressional budget office
Adam Smith
Macroeconomics
14. Patents - Goodwill - and Trademarks (lack physical substance)
Deflation
Intangible Assets
Marginal benefit
Businesses
15. The relationship between disposable income and spending on consumable goods and services
Boom
Consumption function
Capital goods
The quality adjustment bias
16. The portion of planned aggregate expenditure that is not based on output
Command economic system
The Wealth Effect
Autonomous Expenditure
Okun's Law
17. The increase in total cost that comes from producing one additional unit of a specific good or service.
Lorenz curve
Unemployment insurance
Marginal cost
Economic efficiency
18. Maximum price that a customer is willing to pay for a good
Buyer's surplus
Reservation price
Pay
Velocity
19. The price of a good or service in relation to the price of other goods and services.
Capital income
Equilibrium price
Relative price
Inflationary gap
20. Money multiplied by velocity equals nominal GDP.
Outside lag
Tangible Assets
Quantity equation
Marginal tax rate
21. The continuing increase in the average level of prices of goods and services over time.
Keynesian economic theory
Inflation
Consumption
Outside lag
22. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Unemployment insurance
Partnership
Tangible Assets
23. There is an ___________ ___ when aggregate output is above potential output
Economic efficiency
Inflationary gap
Real GDP
Lorenz curve
24. 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.
Anchored inflation expectations
Equilibrium price
Corporation
NRU
25. The time period between a policy's implementation and its desired effects on an economy.
Substitution bias
The quality adjustment bias
Intangible Assets
Outside lag
26. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
The real GDP per person
Intangible Assets
Businesses
Aggregate demand
27. Goods not counted in the nation's GDP.
Aggregate Supply
Intermediate Goods
Short run equilibrium output
Economic efficiency
28. Organizations that act as moderators between employers and employees
Marginal cost
Labor unions
Income
Worker mobility
29. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Socially optimal quantity
Structural unemployment
Traditional economic system
Policy reaction function
30. 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
31. A free market system that relies on private property ownership and supply and demand
The Wealth Effect
Capitalism
Seller's reservation price
Marginal cost
32. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
The quality adjustment bias
Keynesian economic theory
Disinflation
AD curve intersects the SAS curve
33. The maximum amount that an economy can output over a period of time
Potential output
Velocity
Phillips curve
Substitution effect
34. 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.
Tangible Assets
Contractionary policies
Congressional budget office
Labor productivity
35. Represents the governmental tax rate that will best maximize tax revenues.
Frictional unemployment
Boom
Laffer curve
Nominal GDP
36. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Hyperinflation
Autonomous Expenditure
Economic efficiency
AD curve intersects the SAS curve
37. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Velocity
Excess Supply
Indexing
Aggregate demand
38. 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.
Price
Gross Domestic Product (GDP)
Quantity equation
Inflationary gap
39. An increase in spending due to a perceived increase in wealth.
Free market
The Wealth Effect
Okun's Law
Mixed market
40. The ease with which an asset can be converted to currency.
Deflation
Structural policy
Excess Supply
Liquidity
41. 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
Anchored inflation expectations
Monopsony
Substitution bias
Business cycle
42. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Phillips curve
Capital income
Free market
Substitution bias
43. When inflation suddenly deviates from its normal course.
The Wealth Effect
Real employment
Asset
Inflation shock
44. When an economic unit makes more than it spends
Aggregate demand
Substitution bias
Corporation
Saving
45. The goods and services sector focuses largely on the level of ______ .
Fractional
Structural policy
Income
Aggregate supply
46. An increase in this would cause an increase in the aggregate supply
Labor productivity
Menu cost
Structural policy
Price level
47. The real cost of changing a listed price.
Core rate of inflation
Stabilization policies
Menu cost
Law of Diminishing Marginal Utility
48. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Seller's surplus
Consumption
Marginal tax rate
LRAS
49. The beginning of a recession
Seller's reservation price
Frictional unemployment
Peak
Trough
50. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
decreases increases
Invisible hand
Free market