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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. Concerned with analyzing whether or not a policy should be used.
Gross Domestic Product (GDP)
Intermediate Goods
Normative analysis
Corporation
2. Represents the governmental tax rate that will best maximize tax revenues.
Nominal GDP
Laffer curve
Autonomous Expenditure
Aggregate Supply
3. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Worker mobility
Unemployment insurance
Businesses
Indexing
4. When people's expectations of future inflation do not change even though inflation rates change.
Business cycle
Anchored inflation expectations
Economic efficiency
Autonomous Expenditure
5. A Scottish man (1723-1790) who is known as the father of modern economics.
Capital income
Substitution effect
Adam Smith
Recession
6. Unicorporated entity that has shared ownership.
Consumption function
Partnership
Average tax rate
Normative analysis
7. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Keynesian economic theory
Trough
Capital income
Stabilization policies
8. The time between the need for a macroeconomic policy and its implementation
Outside lag
The principle of efficiency
Inside lag
Credibility of monetary policy
9. 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.
Inflationary gap
Intangible Assets
Liquidity
Real employment
10. When inflation suddenly deviates from its normal course.
Inflation shock
Price
Law of Diminishing Marginal Utility
NRU
11. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Labor unions
Aggregate Supply
Inflation inertia
Exchange
12. The rate of price increase on all things except food and energy
Adam Smith
Business cycle
Core rate of inflation
Traditional economic system
13. Caused by changes in the overall economy.
The Wealth Effect
Free market
Cyclical unemployment
Partnership
14. Extreme economic growth
The rate of inflation
Autonomous Expenditure
Boom
Economic efficiency
15. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Seller's reservation price
Real employment
Marginal benefit
16. Legal entity that has received a charter from a state or federal government.
Normative analysis
Corporation
Equilibrium price
Indexing
17. 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
Monopsony
Marginal cost
Reservation price
18. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Labor supply
Market equilibrium
Marginal tax rate
19. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Quantity equation
Substitution bias
Excess Supply
20. A record of economic increases and decreases over time.
Business cycle
Autonomous Expenditure
Trough
Capital goods
21. The government office that is responsible for projecting federal surpluses and deficits
Indexing
Congressional budget office
Rationing
Saving
22. Payments that the government makes to unemployed workers.
Gross National Product (GNP)
Unemployment insurance
Rationing
The real GDP per person
23. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Outside lag
Market equilibrium
Laffer curve
Socially optimal quantity
24. Combines pure market and command. Example: Japan
Mixed market
Marginal cost
Socially optimal quantity
Adam Smith
25. The increase in total benefit that comes from producing one additional unit.
Nominal GDP
The rate of inflation
Price
Marginal benefit
26. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Okun's Law
Supply-side policy
Law of Diminishing Marginal Utility
The real GDP per person
27. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Anchored inflation expectations
Output gap
Fractional
Aggregate demand
28. Goods like food and clothing that have a short lifespan.
Anchored inflation expectations
Intermediate goods
Consumer Nondurables
Exchange
29. The slow change in inflation from year to year in industrialized nations
Inflation inertia
The rate of inflation
Real GDP
Seller's reservation price
30. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Participation rate
Fractional
Output gap
31. 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).
Laffer curve
Frictional unemployment
Socially optimal quantity
Sole proprietorship
32. The percentage of working-age people within the labor force
Hyperinflation
Participation rate
Businesses
Unemployment insurance
33. The adding up of individual economic variables to obtain a large - general picture of the economy.
Laffer curve
Participation rate
Aggregation
Inflationary gap
34. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Labor supply
Law of Demand
Short run equilibrium output
Disinflation
35. The lowest point of the recession
Business cycle
Consumption
Monetarism
Trough
36. The output per employed worker
Tangible Assets
The Wealth Effect
Labor productivity
Standard of living
37. When the people believe that the nation's central bank will keep inflation rates low.
Business cycle
Credibility of monetary policy
Frictional unemployment
Expansionary policies
38. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Real employment
Equilibrium price
Autonomous Expenditure
Fisher effect
39. When the rate of inflation is extremely high.
Hyperinflation
Anchored inflation expectations
The real GDP per person
Liquidity
40. There is an ___________ ___ when aggregate output is above potential output
Traditional economic system
Real employment
Inflationary gap
Worker mobility
41. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Real employment
LRAS
Total surplus
Consumption function
42. Government policies intended to increase spending and output.
Equilibrium price
Marginal benefit
Outside lag
Expansionary policies
43. The increase in total cost that comes from producing one additional unit of a specific good or service.
Excess Supply
Gross Domestic Product (GDP)
Marginal cost
Exchange
44. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
The principle of efficiency
Planned aggregate expenditure (PAE)
Structural unemployment
Inflation inertia
45. The level of output where output equals planned aggregate expenditure
Mixed market
Congressional budget office
Law of Diminishing Marginal Utility
Short run equilibrium output
46. The relationship between disposable income and spending on consumable goods and services
Consumption function
Law of Diminishing Marginal Utility
The real GDP per person
Complement
47. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Cyclical unemployment
Free market
Laffer curve
The quality adjustment bias
48. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Buyer's surplus
Complement
Intermediate Goods
Structural unemployment
49. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Trough
Recession
Monopsony
Business cycle
50. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Consumer Nondurables
Frictional unemployment
Aggregate demand
Price