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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. Business entity which legally has no separate existence from its owner.
Keynesian economic theory
Consumption function
Business cycle
Sole proprietorship
2. Money multiplied by velocity equals nominal GDP.
Free market
Marginal cost
Output gap
Quantity equation
3. When an economic unit makes more than it spends
Sunk cost
Saving
Invisible hand
Capital goods
4. The maximum amount that an economy can output over a period of time
Potential output
Sunk cost
Okun's Law
Quantity equation
5. The movement of workers between jobs - companies - and industries
Complement
Real employment
Outside lag
Worker mobility
6. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Mixed market
Economic efficiency
Velocity
Recession
7. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Autonomous Expenditure
Output gap
Marginal tax rate
8. The ease with which an asset can be converted to currency.
Liquidity
Mixed market
Market equilibrium
Average tax rate
9. When people's expectations of future inflation do not change even though inflation rates change.
Inside lag
Anchored inflation expectations
Aggregate supply shock
The rate of inflation
10. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Mixed market
Capital income
Fisher effect
Inflationary gap
11. 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.
Average tax rate
Law of Demand
Complement
Law of Supply
12. 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.
Substitution bias
Aggregation
Automatic stabilizers
Okun's Law
13. The time period between a policy's implementation and its desired effects on an economy.
Anchored inflation expectations
Outside lag
Labor productivity
Interest
14. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.
Aggregate Supply
Law of Demand
Interest
Disinflation
15. The speed that money changes hands in order to buy and sell final goods and services.
Reservation price
Inflation shock
Velocity
Saving
16. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Consumer Nondurables
Price
Lorenz curve
The real GDP per person
17. An increase in spending due to a perceived increase in wealth.
Seller's reservation price
Labor productivity
The Wealth Effect
Nominal GDP
18. Caused by changes in the overall economy.
Cyclical unemployment
Price level
Contractionary policies
Consumption function
19. 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.
Macroeconomics
Law of Diminishing Marginal Utility
Sunk cost
Economic efficiency
20. 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).
Real GDP
Frictional unemployment
Total surplus
Law of Diminishing Marginal Utility
21. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Substitution bias
NRU
Disinflation
Total surplus
22. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Inflation
Participation rate
Monopsony
23. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Recession
Gross Domestic Product (GDP)
Real GDP
Consumption function
24. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Socially optimal quantity
Laffer curve
Partnership
Gross National Product (GNP)
25. There is an ___________ ___ when aggregate output is above potential output
The quality adjustment bias
Aggregation
Inflationary gap
Credibility of monetary policy
26. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Substitution effect
Real GDP
Price level
27. Combines pure market and command. Example: Japan
Policy reaction function
Mixed market
NRU
Marginal tax rate
28. The adding up of individual economic variables to obtain a large - general picture of the economy.
The principle of efficiency
Aggregation
Monopsony
Excess Supply
29. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Substitution effect
Monetarism
Quantity equation
Aggregate Supply
30. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Income
Market equilibrium
AD curve intersects the SAS curve
Substitution effect
31. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Supply-side policy
Gross National Product (GNP)
Inflationary gap
Traditional economic system
32. The basic assumption of this model is that in the short run - firms meet demand at present price.
Frictional unemployment
Keynesian model
Nominal GDP
Interest
33. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Peak
Aggregate demand
Buyer's surplus
Deflation
34. Payments that the government makes to unemployed workers.
Keynesian economic theory
Complement
Unemployment insurance
Cyclical unemployment
35. The total planned spending on final goods and services.
Mixed market
Planned aggregate expenditure (PAE)
Lorenz curve
Four sectors of the economy
36. The time between the need for a macroeconomic policy and its implementation
The quality adjustment bias
Inside lag
Peak
Income
37. The lowest point of the recession
Keynesian economic theory
Trough
Autonomous Expenditure
Economic efficiency
38. The goods and services sector focuses largely on the level of ______ .
Income
Fractional
Participation rate
Average tax rate
39. The real cost of changing a listed price.
Deflation
Recession
Menu cost
Intermediate Goods
40. The amount of workers that are willing to work for a real wage.
Gross Domestic Product (GDP)
Labor supply
Law of Diminishing Marginal Utility
Keynesian economic theory
41. The rate of price increase on all things except food and energy
Velocity
Core rate of inflation
Aggregation
Keynesian model
42. The price of a good or service in relation to the price of other goods and services.
Asset
Relative price
NRU
The principle of efficiency
43. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Recession
Keynesian model
Invisible hand
Seller's surplus
44. The increase in total benefit that comes from producing one additional unit.
Consumption function
Consumer Nondurables
Seller's reservation price
Marginal benefit
45. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Keynesian economic theory
The principle of efficiency
Consumption
Rationing
46. When both producers and consumers are satisfied with their quantities at market price.
Nominal GDP
Free market
Traditional economic system
Market equilibrium
47. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Income
The quality adjustment bias
Consumer Nondurables
Liquidity
48. The labor sector highlights the rate of ____ .
Pay
Quantity equation
Sunk cost
decreases increases
49. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Partnership
Asset
Participation rate
50. Goods and services sector - Labor sector - monetary sector - international sector.
Fisher effect
Four sectors of the economy
Invisible hand
NRU