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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. The part of economics study that looks at the operation of a nation's economy as a whole
Gross Domestic Product (GDP)
Macroeconomics
Policy reaction function
Credibility of monetary policy
2. A large - unexpected change in the cost of resources.
Aggregate supply shock
Price
Aggregate supply
Indexing
3. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
The quality adjustment bias
Marginal cost
Recession
Market equilibrium
4. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Normative analysis
Excess Supply
Invisible hand
Cyclical unemployment
5. The rise in taxes that occurs when before-tax income increases by one dollar
Peak
Law of Diminishing Marginal Utility
Aggregate supply
Marginal tax rate
6. The difference between the price received by the seller and the seller's reservation price
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7. Combines pure market and command. Example: Japan
Pay
Income
Monopsony
Mixed market
8. Total supply of goods and services in an economy
The rate of inflation
Structural policy
Automatic stabilizers
Aggregate supply
9. Goods not counted in the nation's GDP.
Inflation shock
The Wealth Effect
Intermediate Goods
Supply-side policy
10. The lowest point of the recession
Policy reaction function
Trough
Marginal tax rate
Gross National Product (GNP)
11. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Supply-side policy
Saving
Inflationary gap
Indexing
12. When inflation suddenly deviates from its normal course.
Fisher effect
Labor productivity
Inflation shock
Output gap
13. The portion of planned aggregate expenditure that is not based on output
Inflation inertia
Aggregate supply
Autonomous Expenditure
Price
14. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Cyclical unemployment
Saving
Recession
Gross Domestic Product (GDP)
15. 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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16. The amount of workers that are willing to work for a real wage.
Lorenz curve
Menu cost
Price
Labor supply
17. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Aggregate demand
Seller's surplus
Standard of living
Complement
18. The increase in total benefit that comes from producing one additional unit.
Capital goods
Gross Domestic Product (GDP)
Inside lag
Marginal benefit
19. When people's expectations of future inflation do not change even though inflation rates change.
The real GDP per person
Businesses
Anchored inflation expectations
Aggregate supply shock
20. The speed that money changes hands in order to buy and sell final goods and services.
Gross Domestic Product (GDP)
Labor supply
Velocity
Mixed market
21. Goods and services sector - Labor sector - monetary sector - international sector.
Businesses
Capital goods
Monopsony
Four sectors of the economy
22. The goods and services sector focuses largely on the level of ______ .
Menu cost
Price level
Income
Buyer's surplus
23. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Partnership
Autonomous Expenditure
Core rate of inflation
24. The degree to which people have access to goods and services that make their lives better.
Free market
Standard of living
Monopsony
Laffer curve
25. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Mixed market
Fisher effect
Seller's reservation price
Interest
26. Describes how the economy directly effects the actions policymakers take.
Monetarism
Policy reaction function
Price
Sole proprietorship
27. There is an ___________ ___ when aggregate output is above potential output
Contractionary policies
Boom
Inflationary gap
Price level
28. 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
Capitalism
Real GDP
Menu cost
Exchange
29. Organizations that act as moderators between employers and employees
Interest
Unemployment insurance
Labor unions
Autonomous Expenditure
30. The relationship between disposable income and spending on consumable goods and services
Consumption function
Free market
Capital goods
Stabilization policies
31. 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.
Command economic system
Relative price
NRU
Planned aggregate expenditure (PAE)
32. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Labor productivity
Phillips curve
Gross National Product (GNP)
Labor productivity
33. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Credibility of monetary policy
Capital goods
Buyer's surplus
34. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Aggregate Supply
Expansionary policies
The real GDP per person
Fisher effect
35. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Substitution effect
Keynesian model
Buyer's surplus
Businesses
36. The time period between a policy's implementation and its desired effects on an economy.
Boom
Equilibrium price
Outside lag
Traditional economic system
37. When an economic unit makes more than it spends
Worker mobility
Law of Diminishing Marginal Utility
Equilibrium price
Saving
38. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Policy reaction function
LRAS
Partnership
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
Real GDP
Monetarism
Menu cost
Excess Supply
40. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Deflation
Capital income
Consumption function
Market equilibrium
41. The monetary sector focuses on the ________ rate.
Real employment
Intangible Assets
Interest
Capitalism
42. 1 percent more unemployment results in 2 percent less output.
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43. The real cost of changing a listed price.
The real GDP per person
Menu cost
Indexing
Traditional economic system
44. The government office that is responsible for projecting federal surpluses and deficits
Aggregate supply shock
Congressional budget office
Velocity
Law of Supply
45. A result of there only being one buyer of a resource input - good - or service.
Velocity
Monopsony
Four sectors of the economy
Law of Demand
46. The increase in total cost that comes from producing one additional unit of a specific good or service.
decreases increases
Adam Smith
Marginal cost
Gross National Product (GNP)
47. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service
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48. Goods that are used in the production of final goods.
Peak
Intermediate goods
Price
Gross Domestic Product (GDP)
49. The international sector emphasizes the ________ rate.
Exchange
Law of Supply
Corporation
Output gap
50. The output per employed worker
Standard of living
Aggregate supply shock
Labor productivity
Keynesian economic theory