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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. When inflation suddenly deviates from its normal course.
Capital goods
Core rate of inflation
Inflation shock
Seller's reservation price
2. The level of output where output equals planned aggregate expenditure
Capital goods
Price level
Sole proprietorship
Short run equilibrium output
3. When prices fall consistently over time - leading to negative inflation.
Short run equilibrium output
Inflationary gap
Deflation
Consumer Nondurables
4. Goods that are used in the production of final goods.
Inflationary gap
Keynesian model
Macroeconomics
Intermediate goods
5. Combines pure market and command. Example: Japan
Lorenz curve
Mixed market
Labor productivity
Substitution bias
6. A large - unexpected change in the cost of resources.
Standard of living
Frictional unemployment
Corporation
Aggregate supply shock
7. Most free-market banking systems are based on __________ reserves.
Fractional
Keynesian model
Anchored inflation expectations
Law of Diminishing Marginal Utility
8. The total value of goods and services produced in a country valued at current prices.
Nominal GDP
Sunk cost
Anchored inflation expectations
Asset
9. Payments that the government makes to unemployed workers.
Seller's reservation price
AD curve intersects the SAS curve
Short run equilibrium output
Unemployment insurance
10. 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.
Recession
Traditional economic system
Labor productivity
Free market
11. Government policies intended to increase spending and output.
Expansionary policies
NRU
Substitution effect
Output gap
12. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Structural policy
Recession
Core rate of inflation
13. The beginning of a recession
Structural unemployment
Peak
Recession
The real GDP per person
14. The output per employed worker
Inflationary gap
Consumer Nondurables
Labor productivity
Mixed market
15. Goods like food and clothing that have a short lifespan.
Laffer curve
Consumer Nondurables
Saving
Automatic stabilizers
16. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Businesses
Okun's Law
Business cycle
Command economic system
17. A record of economic increases and decreases over time.
Free market
Sunk cost
Business cycle
Structural unemployment
18. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Economic efficiency
Mixed market
Sunk cost
Worker mobility
19. Money multiplied by velocity equals nominal GDP.
Price level
Quantity equation
Labor unions
decreases increases
20. Total tax paid divided by total (taxable) income - as a percentage.
Inside lag
Menu cost
Inflationary gap
Average tax rate
21. The price of a good or service in relation to the price of other goods and services.
Exchange
Relative price
Monopsony
Aggregate Supply
22. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Real employment
Excess Supply
Peak
23. 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.
Tangible Assets
Velocity
Recession
Automatic stabilizers
24. The labor sector highlights the rate of ____ .
Free market
Inflation inertia
Complement
Pay
25. When the people believe that the nation's central bank will keep inflation rates low.
Labor unions
Tangible Assets
Menu cost
Credibility of monetary policy
26. Real Estate - Equipment - and Cash (physical assets)
Anchored inflation expectations
Income
Congressional budget office
Tangible Assets
27. A policy that affects potential output
Buyer's surplus
Supply-side policy
Mixed market
Recession
28. 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.
Relative price
Free market
Menu cost
Real employment
29. 1 percent more unemployment results in 2 percent less output.
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30. 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.
Gross Domestic Product (GDP)
Quantity equation
Substitution effect
Law of Diminishing Marginal Utility
31. 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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32. The rate of price increase on all things except food and energy
Mixed market
Structural unemployment
Core rate of inflation
Standard of living
33. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
AD curve intersects the SAS curve
Monetarism
Real GDP
34. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Intermediate goods
Menu cost
Labor supply
35. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Boom
Intermediate goods
Standard of living
36. 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
Law of Supply
Real GDP
Cyclical unemployment
Substitution bias
37. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Marginal benefit
Tangible Assets
Sunk cost
Complement
38. The time between the need for a macroeconomic policy and its implementation
Inside lag
Invisible hand
Keynesian model
Asset
39. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
The quality adjustment bias
Cyclical unemployment
Buyer's surplus
40. 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.
Quantity equation
Equilibrium price
Exchange
Labor supply
41. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Labor supply
Substitution bias
Free market
Seller's reservation price
42. The increase in total benefit that comes from producing one additional unit.
The quality adjustment bias
Marginal benefit
Average tax rate
Inflationary gap
43. Goods and services sector - Labor sector - monetary sector - international sector.
Real GDP
Tangible Assets
Market equilibrium
Four sectors of the economy
44. The continuing increase in the average level of prices of goods and services over time.
Hyperinflation
Asset
Law of Diminishing Marginal Utility
Inflation
45. That efficiency leads to economic prosperity for all.
Partnership
Laffer curve
Aggregate supply
The principle of efficiency
46. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Price
Economic efficiency
Marginal tax rate
47. Describes how the economy directly effects the actions policymakers take.
Monetarism
Four sectors of the economy
Policy reaction function
Sunk cost
48. The real cost of changing a listed price.
Menu cost
Asset
Marginal tax rate
Seller's surplus
49. Government policies aimed at stabilizing the economy by eliminating output gaps
Lorenz curve
Inside lag
Stabilization policies
Recession
50. Maximum price that a customer is willing to pay for a good
Economic efficiency
Relative price
Reservation price
Monopsony