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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. Combines pure market and command. Example: Japan
Cyclical unemployment
Automatic stabilizers
Complement
Mixed market
2. A Scottish man (1723-1790) who is known as the father of modern economics.
Marginal cost
Adam Smith
Command economic system
Invisible hand
3. Goods like food and clothing that have a short lifespan.
The Wealth Effect
Consumer Nondurables
Marginal benefit
Substitution bias
4. Government policies aimed at stabilizing the economy by eliminating output gaps
Output gap
Stabilization policies
Consumption
Four sectors of the economy
5. The beginning of a recession
Peak
Intangible Assets
Sunk cost
Cyclical unemployment
6. The government office that is responsible for projecting federal surpluses and deficits
Aggregate demand
Inside lag
Automatic stabilizers
Congressional budget office
7. 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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8. The rise in taxes that occurs when before-tax income increases by one dollar
Keynesian model
Inside lag
Marginal tax rate
Price
9. The goods and services sector focuses largely on the level of ______ .
Laffer curve
Excess Supply
Expansionary policies
Income
10. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Expansionary policies
Indexing
Outside lag
Tangible Assets
11. The portion of planned aggregate expenditure that is not based on output
Planned aggregate expenditure (PAE)
Complement
Labor productivity
Autonomous Expenditure
12. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
Normative analysis
Substitution effect
Relative price
13. Total tax paid divided by total (taxable) income - as a percentage.
Inflation inertia
Average tax rate
Four sectors of the economy
Worker mobility
14. The speed that money changes hands in order to buy and sell final goods and services.
Core rate of inflation
Invisible hand
The rate of inflation
Velocity
15. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Intermediate Goods
Aggregate demand
Interest
Aggregation
16. 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).
Lorenz curve
Inflation shock
Hyperinflation
Frictional unemployment
17. The continuing increase in the average level of prices of goods and services over time.
Consumer Nondurables
The principle of efficiency
Inflation
Businesses
18. 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
Marginal tax rate
Rationing
Normative analysis
Real GDP
19. 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.
Tangible Assets
Gross Domestic Product (GDP)
Standard of living
Mixed market
20. The degree to which people have access to goods and services that make their lives better.
Sunk cost
Contractionary policies
Standard of living
decreases increases
21. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Price level
Complement
The Wealth Effect
The rate of inflation
22. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Consumer Nondurables
Tangible Assets
Marginal tax rate
23. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Congressional budget office
Socially optimal quantity
Intermediate goods
Supply-side policy
24. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Adam Smith
Inside lag
Intermediate goods
25. When the rate of inflation is extremely high.
Hyperinflation
Asset
Congressional budget office
Relative price
26. The lowest point of the recession
Trough
Consumption
Cyclical unemployment
Nominal GDP
27. Natural Rate of Unemployment - a rate that will always exist
Relative price
Structural unemployment
Invisible hand
NRU
28. The labor sector highlights the rate of ____ .
Pay
Price
Capitalism
The Wealth Effect
29. A free market system that relies on private property ownership and supply and demand
Capitalism
Velocity
Fractional
Substitution effect
30. The level of output where output equals planned aggregate expenditure
Corporation
Intermediate goods
Short run equilibrium output
Labor supply
31. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Potential output
Asset
Pay
32. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.
Cyclical unemployment
Command economic system
Corporation
Marginal benefit
33. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Equilibrium price
Reservation price
The real GDP per person
Keynesian model
34. The increase in total benefit that comes from producing one additional unit.
Peak
Intermediate goods
Relative price
Marginal benefit
35. Legal entity that has received a charter from a state or federal government.
Free market
Seller's reservation price
Corporation
Aggregate supply shock
36. 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.
Consumer Nondurables
Monopsony
Contractionary policies
Price level
37. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Capitalism
Aggregate Supply
Businesses
38. (n) something of value; a resource; an advantage
Asset
Peak
Macroeconomics
Socially optimal quantity
39. A large - unexpected change in the cost of resources.
Capital income
Law of Supply
Participation rate
Aggregate supply shock
40. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Consumption function
Excess Supply
Outside lag
Disinflation
41. Goods not counted in the nation's GDP.
Intermediate Goods
Aggregate supply shock
Okun's Law
Business cycle
42. Organizations that act as moderators between employers and employees
Keynesian economic theory
The rate of inflation
Labor unions
Substitution bias
43. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Aggregate demand
Capital income
Stabilization policies
Contractionary policies
44. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Supply-side policy
Potential output
Indexing
Businesses
45. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Aggregate Supply
Recession
NRU
Real GDP
46. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Lorenz curve
Price
Saving
Buyer's surplus
47. The maximum amount that an economy can output over a period of time
Structural policy
Invisible hand
Indexing
Potential output
48. When prices fall consistently over time - leading to negative inflation.
Monopsony
Labor productivity
Deflation
Invisible hand
49. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Partnership
Inflation
Okun's Law
50. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Frictional unemployment
Inflation shock
Pay