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. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Outside lag
Sunk cost
Marginal cost
Indexing
2. The percentage of working-age people within the labor force
Average tax rate
Participation rate
Potential output
Equilibrium price
3. 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
Lorenz curve
Exchange
Substitution bias
Core rate of inflation
4. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
The quality adjustment bias
Marginal tax rate
Fractional
Peak
5. Money multiplied by velocity equals nominal GDP.
Exchange
Quantity equation
Congressional budget office
Deflation
6. When both producers and consumers are satisfied with their quantities at market price.
Monopsony
Marginal tax rate
Market equilibrium
Business cycle
7. The basic assumption of this model is that in the short run - firms meet demand at present price.
Four sectors of the economy
Liquidity
Keynesian model
Sunk cost
8. 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.
Substitution bias
Equilibrium price
Invisible hand
Output gap
9. Unicorporated entity that has shared ownership.
AD curve intersects the SAS curve
Substitution bias
Partnership
Laffer curve
10. 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.
Substitution effect
Tangible Assets
Law of Supply
Seller's surplus
11. Organizations that act as moderators between employers and employees
Labor unions
Trough
Participation rate
Congressional budget office
12. Natural Rate of Unemployment - a rate that will always exist
NRU
Total surplus
The principle of efficiency
Expansionary policies
13. Business entity which legally has no separate existence from its owner.
Supply-side policy
Trough
Sole proprietorship
Anchored inflation expectations
14. The beginning of a recession
Gross Domestic Product (GDP)
Pay
Indexing
Peak
15. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Congressional budget office
Real GDP
Asset
Sunk cost
16. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Structural policy
Aggregate supply shock
Excess Supply
Price
17. Goods and services sector - Labor sector - monetary sector - international sector.
Market equilibrium
The rate of inflation
Total surplus
Four sectors of the economy
18. Government policies intended to increase spending and output.
Expansionary policies
Keynesian model
Menu cost
Real quantity
19. A measure of overall price levels at a specific point in the price index.
Phillips curve
Aggregate supply
Supply-side policy
Price level
20. Goods that are used in the production of final goods.
Law of Supply
The principle of efficiency
Intermediate goods
Law of Diminishing Marginal Utility
21. The real cost of changing a listed price.
Menu cost
Price
Keynesian economic theory
Aggregation
22. 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.
Pay
Contractionary policies
Velocity
Inflation inertia
23. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Hyperinflation
Structural unemployment
Market equilibrium
AD curve intersects the SAS curve
24. The international sector emphasizes the ________ rate.
Planned aggregate expenditure (PAE)
Businesses
Seller's surplus
Exchange
25. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Autonomous Expenditure
Aggregate supply shock
Trough
26. A large - unexpected change in the cost of resources.
Seller's surplus
Invisible hand
Contractionary policies
Aggregate supply shock
27. The rise in taxes that occurs when before-tax income increases by one dollar
Worker mobility
Aggregate demand
Inflationary gap
Marginal tax rate
28. Legal entity that has received a charter from a state or federal government.
The quality adjustment bias
Okun's Law
Corporation
Recession
29. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Credibility of monetary policy
Free market
Stabilization policies
30. The movement of workers between jobs - companies - and industries
Worker mobility
Menu cost
Reservation price
Complement
31. That efficiency leads to economic prosperity for all.
The principle of efficiency
Phillips curve
The Wealth Effect
Inflation
32. 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
Frictional unemployment
Labor supply
Consumption function
33. 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.
Aggregate supply shock
Automatic stabilizers
Price
Command economic system
34. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Aggregate supply shock
Equilibrium price
Law of Supply
Total surplus
35. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Menu cost
Hyperinflation
Rationing
Liquidity
36. The adding up of individual economic variables to obtain a large - general picture of the economy.
Economic efficiency
Marginal benefit
Labor supply
Aggregation
37. The relationship between disposable income and spending on consumable goods and services
Core rate of inflation
Standard of living
Consumption function
Monetarism
38. The continuing increase in the average level of prices of goods and services over time.
Law of Diminishing Marginal Utility
Economic efficiency
Inflation
Seller's surplus
39. 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
Law of Supply
Total surplus
Normative analysis
40. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Short run equilibrium output
Aggregate Supply
Labor supply
41. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Laffer curve
Fisher effect
Invisible hand
Inflation shock
42. When prices fall consistently over time - leading to negative inflation.
Frictional unemployment
Peak
Deflation
Disinflation
43. The total value of goods and services produced in a country valued at current prices.
Socially optimal quantity
Nominal GDP
Gross Domestic Product (GDP)
Aggregate Supply
44. 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)
Reservation price
Monopsony
Consumption function
45. A result of there only being one buyer of a resource input - good - or service.
Keynesian model
Gross Domestic Product (GDP)
Monopsony
Market equilibrium
46. Extreme economic growth
Boom
Okun's Law
Monopsony
Law of Demand
47. Goods not counted in the nation's GDP.
Marginal cost
Intermediate Goods
Boom
Labor unions
48. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Reservation price
Recession
Socially optimal quantity
Peak
49. 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
The real GDP per person
Socially optimal quantity
Real GDP
Free market
50. A free market system that relies on private property ownership and supply and demand
Real quantity
AD curve intersects the SAS curve
Consumption
Capitalism