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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. Patents - Goodwill - and Trademarks (lack physical substance)
Intangible Assets
The rate of inflation
Supply-side policy
Marginal tax rate
2. When the people believe that the nation's central bank will keep inflation rates low.
Automatic stabilizers
Credibility of monetary policy
NRU
Pay
3. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Indexing
Mixed market
Intermediate goods
4. 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.
Expansionary policies
Equilibrium price
Worker mobility
decreases increases
5. 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.
Supply-side policy
Real employment
Marginal tax rate
Reservation price
6. The total value of goods and services produced in a country valued at current prices.
Fisher effect
Potential output
Nominal GDP
AD curve intersects the SAS curve
7. 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.
Adam Smith
Marginal benefit
Command economic system
Frictional unemployment
8. The portion of planned aggregate expenditure that is not based on output
Autonomous Expenditure
Partnership
Interest
Reservation price
9. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Invisible hand
Supply-side policy
Interest
Economic efficiency
10. Extreme economic growth
Marginal cost
Worker mobility
Substitution effect
Boom
11. Used to demonstrate shifts in income distribution among a population over time.
NRU
Cyclical unemployment
Lorenz curve
Gross Domestic Product (GDP)
12. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Price
Keynesian economic theory
Structural policy
Peak
13. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Disinflation
Nominal GDP
Price
Structural unemployment
14. The difference between the price received by the seller and the seller's reservation price
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15. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Labor productivity
Consumption function
Short run equilibrium output
16. The part of economics study that looks at the operation of a nation's economy as a whole
Quantity equation
Recession
Inflation inertia
Macroeconomics
17. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Relative price
Marginal benefit
LRAS
18. Legal entity that has received a charter from a state or federal government.
Buyer's surplus
Labor productivity
Corporation
Average tax rate
19. Goods not counted in the nation's GDP.
Fractional
Partnership
Intermediate Goods
Real GDP
20. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.
decreases increases
Total surplus
Traditional economic system
Labor supply
21. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Monetarism
Structural unemployment
Structural policy
Law of Demand
22. Government policies aimed at stabilizing the economy by eliminating output gaps
decreases increases
Stabilization policies
Equilibrium price
Short run equilibrium output
23. The lowest point of the recession
Trough
Seller's surplus
Aggregate supply
Intermediate Goods
24. When inflation suddenly deviates from its normal course.
Marginal tax rate
Real quantity
Inflation shock
Monetarism
25. 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.
Law of Diminishing Marginal Utility
Autonomous Expenditure
Short run equilibrium output
Capital goods
26. 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.
Aggregate supply
Automatic stabilizers
Anchored inflation expectations
Businesses
27. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Asset
Disinflation
Fisher effect
Exchange
28. Concerned with analyzing whether or not a policy should be used.
Price
Intermediate Goods
Invisible hand
Normative analysis
29. The continuing increase in the average level of prices of goods and services over time.
Peak
Price
Inflation
Cyclical unemployment
30. Government policies intended to increase spending and output.
Aggregate supply shock
Expansionary policies
Substitution effect
Macroeconomics
31. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Cyclical unemployment
Aggregate supply
Inflation inertia
Invisible hand
32. The speed that money changes hands in order to buy and sell final goods and services.
Supply-side policy
Marginal tax rate
Velocity
Menu cost
33. Describes how the economy directly effects the actions policymakers take.
Marginal cost
Monetarism
Policy reaction function
Reservation price
34. (n) something of value; a resource; an advantage
Recession
Equilibrium price
Asset
Aggregate Supply
35. When the rate of inflation is extremely high.
Frictional unemployment
Free market
Policy reaction function
Hyperinflation
36. A record of economic increases and decreases over time.
Business cycle
Inflationary gap
Outside lag
Inflation
37. The adding up of individual economic variables to obtain a large - general picture of the economy.
Short run equilibrium output
Corporation
Law of Supply
Aggregation
38. The rise in taxes that occurs when before-tax income increases by one dollar
Automatic stabilizers
Marginal tax rate
Reservation price
Aggregate supply shock
39. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Real employment
Stabilization policies
Indexing
Output gap
40. Business entity which legally has no separate existence from its owner.
Exchange
Sole proprietorship
Tangible Assets
Labor unions
41. Total supply of goods and services in an economy
The real GDP per person
Aggregate supply
Stabilization policies
Fractional
42. The total planned spending on final goods and services.
Inflation inertia
Planned aggregate expenditure (PAE)
Participation rate
Asset
43. 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.
Free market
Law of Demand
Substitution effect
LRAS
44. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Partnership
Traditional economic system
Capital income
Liquidity
45. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Monetarism
Trough
Inflationary gap
46. That efficiency leads to economic prosperity for all.
The principle of efficiency
Economic efficiency
Stabilization policies
Sunk cost
47. The increase in total benefit that comes from producing one additional unit.
Sunk cost
Marginal benefit
Participation rate
NRU
48. When people's expectations of future inflation do not change even though inflation rates change.
Anchored inflation expectations
Average tax rate
Mixed market
Fisher effect
49. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Trough
Disinflation
Price level
50. A free market system that relies on private property ownership and supply and demand
Capitalism
Inflation
Boom
Relative price