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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Reservation price
Capitalism
Aggregate supply shock
2. Goods not counted in the nation's GDP.
Relative price
Automatic stabilizers
Frictional unemployment
Intermediate Goods
3. Goods and services sector - Labor sector - monetary sector - international sector.
Macroeconomics
Economic efficiency
Four sectors of the economy
Sole proprietorship
4. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Output gap
Businesses
The real GDP per person
Intermediate Goods
5. The increase in total cost that comes from producing one additional unit of a specific good or service.
Supply-side policy
Indexing
Command economic system
Marginal cost
6. The annual percentage rate of change in price level reflected by price indexes
Recession
The rate of inflation
Total surplus
Worker mobility
7. 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.
Contractionary policies
Recession
Law of Diminishing Marginal Utility
Aggregate supply
8. The movement of workers between jobs - companies - and industries
Four sectors of the economy
Nominal GDP
Labor productivity
Worker mobility
9. Organizations that act as moderators between employers and employees
Partnership
Rationing
Sole proprietorship
Labor unions
10. The real cost of changing a listed price.
Menu cost
Consumption function
Inside lag
NRU
11. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Consumer Nondurables
Aggregate supply
Complement
Traditional economic system
12. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
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13. The beginning of a recession
Cyclical unemployment
Peak
Worker mobility
Economic efficiency
14. 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
NRU
Lorenz curve
The quality adjustment bias
Real GDP
15. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.
Automatic stabilizers
Interest
Four sectors of the economy
Command economic system
16. A record of economic increases and decreases over time.
Normative analysis
Cyclical unemployment
Sole proprietorship
Business cycle
17. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Intermediate Goods
Command economic system
Laffer curve
18. 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.
Total surplus
Socially optimal quantity
Intangible Assets
Law of Supply
19. Unicorporated entity that has shared ownership.
Partnership
Mixed market
The principle of efficiency
Marginal tax rate
20. An increase in this would cause an increase in the aggregate supply
Labor productivity
Okun's Law
Intermediate goods
Price level
21. Patents - Goodwill - and Trademarks (lack physical substance)
The Wealth Effect
Labor supply
Marginal benefit
Intangible Assets
22. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Outside lag
Participation rate
Partnership
Total surplus
23. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Buyer's surplus
Quantity equation
Fisher effect
24. Government policies intended to increase spending and output.
Aggregate demand
Expansionary policies
The principle of efficiency
Partnership
25. Used to demonstrate shifts in income distribution among a population over time.
Real GDP
Consumption function
Policy reaction function
Lorenz curve
26. The maximum amount that an economy can output over a period of time
Potential output
NRU
Real quantity
Peak
27. The total planned spending on final goods and services.
Inside lag
Labor supply
LRAS
Planned aggregate expenditure (PAE)
28. The goods and services sector focuses largely on the level of ______ .
Interest
Saving
Income
Aggregate Supply
29. Combines pure market and command. Example: Japan
Macroeconomics
Saving
Economic efficiency
Mixed market
30. When an economic unit makes more than it spends
Saving
Law of Diminishing Marginal Utility
Lorenz curve
Corporation
31. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Consumer Nondurables
Gross National Product (GNP)
NRU
Aggregate demand
32. Maximum price that a customer is willing to pay for a good
Excess Supply
Reservation price
Exchange
Consumer Nondurables
33. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross National Product (GNP)
Liquidity
Tangible Assets
Total surplus
34. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Mixed market
Marginal benefit
decreases increases
35. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Consumption
LRAS
Businesses
Rationing
36. When inflation suddenly deviates from its normal course.
Gross National Product (GNP)
Excess Supply
Structural unemployment
Inflation shock
37. The rate of price increase on all things except food and energy
Cyclical unemployment
Core rate of inflation
Lorenz curve
The real GDP per person
38. The international sector emphasizes the ________ rate.
The quality adjustment bias
Interest
Marginal cost
Exchange
39. 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
Seller's surplus
decreases increases
Consumer Nondurables
40. The time between the need for a macroeconomic policy and its implementation
Worker mobility
Total surplus
Inside lag
Congressional budget office
41. A result of there only being one buyer of a resource input - good - or service.
Pay
Law of Demand
Potential output
Monopsony
42. The rise in taxes that occurs when before-tax income increases by one dollar
Sunk cost
Marginal tax rate
Substitution bias
Inside lag
43. The amount of workers that are willing to work for a real wage.
Outside lag
Keynesian economic theory
Inflation
Labor supply
44. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Tangible Assets
Lorenz curve
The Wealth Effect
45. Used in the production of final goods - but instead of being consumed - are available for reuse.
Short run equilibrium output
Inside lag
Capital goods
Monopsony
46. Most free-market banking systems are based on __________ reserves.
Capital goods
Fractional
Aggregation
Business cycle
47. A measure of overall price levels at a specific point in the price index.
Price level
Traditional economic system
Sunk cost
Standard of living
48. Government policies aimed at stabilizing the economy by eliminating output gaps
Interest
Free market
Law of Demand
Stabilization policies
49. Natural Rate of Unemployment - a rate that will always exist
NRU
Tangible Assets
Total surplus
Inflation
50. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Market equilibrium
Invisible hand
Excess Supply
Tangible Assets