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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Recession
Unemployment insurance
Saving
Aggregate Supply
2. Used in the production of final goods - but instead of being consumed - are available for reuse.
Substitution bias
Capital goods
Expansionary policies
Price
3. A measure of overall price levels at a specific point in the price index.
Price level
Substitution effect
Market equilibrium
Exchange
4. (n) something of value; a resource; an advantage
Asset
Capital income
Aggregate Supply
The Wealth Effect
5. Total supply of goods and services in an economy
Macroeconomics
Aggregate supply
Liquidity
Output gap
6. 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.
The Wealth Effect
Real employment
Invisible hand
Fisher effect
7. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Disinflation
Boom
Reservation price
Marginal tax rate
8. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Aggregate supply
Credibility of monetary policy
Socially optimal quantity
9. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Partnership
Excess Supply
Marginal cost
Total surplus
10. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Lorenz curve
Capital income
Labor productivity
Outside lag
11. The beginning of a recession
Cyclical unemployment
Sunk cost
Peak
Structural unemployment
12. Combines pure market and command. Example: Japan
Seller's surplus
Mixed market
The Wealth Effect
Consumption
13. Extreme economic growth
Labor productivity
Policy reaction function
Businesses
Boom
14. Natural Rate of Unemployment - a rate that will always exist
Capitalism
NRU
Phillips curve
Reservation price
15. The real cost of changing a listed price.
Invisible hand
Menu cost
Real employment
Intangible Assets
16. The percentage of working-age people within the labor force
Cyclical unemployment
Participation rate
Seller's reservation price
LRAS
17. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Nominal GDP
Aggregate Supply
Economic efficiency
Command economic system
18. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Capital income
Monetarism
Excess Supply
LRAS
19. Government policies aimed at stabilizing the economy by eliminating output gaps
Real employment
Intermediate goods
Stabilization policies
Real quantity
20. Caused by changes in the overall economy.
Gross Domestic Product (GDP)
Cyclical unemployment
Excess Supply
Quantity equation
21. Goods like food and clothing that have a short lifespan.
Short run equilibrium output
Menu cost
Capitalism
Consumer Nondurables
22. When the rate of inflation is extremely high.
Inside lag
Seller's surplus
Credibility of monetary policy
Hyperinflation
23. A large - unexpected change in the cost of resources.
Aggregate supply shock
Exchange
Equilibrium price
Short run equilibrium output
24. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Law of Supply
Normative analysis
Invisible hand
Lorenz curve
25. The monetary sector focuses on the ________ rate.
Labor productivity
Equilibrium price
Interest
Indexing
26. An increase in spending due to a perceived increase in wealth.
Consumption function
The Wealth Effect
Pay
Intangible Assets
27. The degree to which people have access to goods and services that make their lives better.
Short run equilibrium output
Standard of living
Autonomous Expenditure
Relative price
28. The amount of workers that are willing to work for a real wage.
The quality adjustment bias
Labor supply
Reservation price
Consumption function
29. A result of there only being one buyer of a resource input - good - or service.
Monopsony
Monetarism
Substitution effect
Policy reaction function
30. The total planned spending on final goods and services.
Intermediate goods
Planned aggregate expenditure (PAE)
Intangible Assets
Stabilization policies
31. Most free-market banking systems are based on __________ reserves.
Fractional
The quality adjustment bias
Consumption function
Velocity
32. The annual percentage rate of change in price level reflected by price indexes
The rate of inflation
Buyer's surplus
Potential output
Aggregate Supply
33. The goods and services sector focuses largely on the level of ______ .
Macroeconomics
Income
Gross National Product (GNP)
Inflation
34. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
The real GDP per person
Trough
Okun's Law
35. An increase in this would cause an increase in the aggregate supply
Labor productivity
Price level
Gross Domestic Product (GDP)
Law of Demand
36. The ease with which an asset can be converted to currency.
Liquidity
AD curve intersects the SAS curve
Complement
Velocity
37. 1 percent more unemployment results in 2 percent less output.
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38. 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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39. The portion of planned aggregate expenditure that is not based on output
Autonomous Expenditure
Socially optimal quantity
Policy reaction function
Marginal cost
40. A free market system that relies on private property ownership and supply and demand
Automatic stabilizers
Inside lag
Price
Capitalism
41. 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.
Participation rate
Nominal GDP
Fractional
Automatic stabilizers
42. The time between the need for a macroeconomic policy and its implementation
Seller's reservation price
Output gap
Consumption
Inside lag
43. The movement of workers between jobs - companies - and industries
Interest
Worker mobility
Aggregate demand
Saving
44. When an economic unit makes more than it spends
Fisher effect
Saving
Cyclical unemployment
Laffer curve
45. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
The real GDP per person
Seller's surplus
Macroeconomics
The Wealth Effect
46. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Aggregate Supply
The principle of efficiency
Aggregate supply shock
47. 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.
Cyclical unemployment
Rationing
Law of Diminishing Marginal Utility
Short run equilibrium output
48. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Corporation
Rationing
Traditional economic system
Aggregate supply
49. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Frictional unemployment
Normative analysis
Keynesian model
50. That efficiency leads to economic prosperity for all.
Reservation price
Potential output
Aggregate Supply
The principle of efficiency