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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. An increase in this would cause an increase in the aggregate supply
Consumer Nondurables
Stabilization policies
Capital goods
Labor productivity
2. A quantity that is measured in real terms - the actual quantity of a good or service
Saving
Four sectors of the economy
Law of Diminishing Marginal Utility
Real quantity
3. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Structural unemployment
Capitalism
Laffer curve
4. The amount of workers that are willing to work for a real wage.
Velocity
Consumption
Labor supply
Supply-side policy
5. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
The principle of efficiency
Complement
Standard of living
AD curve intersects the SAS curve
6. Total supply of goods and services in an economy
Cyclical unemployment
Traditional economic system
Aggregate supply
Seller's reservation price
7. Used in the production of final goods - but instead of being consumed - are available for reuse.
The quality adjustment bias
Capital goods
decreases increases
Labor supply
8. The continuing increase in the average level of prices of goods and services over time.
Corporation
Structural policy
Inflation
The rate of inflation
9. There is an ___________ ___ when aggregate output is above potential output
Relative price
Monopsony
LRAS
Inflationary gap
10. The time between the need for a macroeconomic policy and its implementation
Inflationary gap
Tangible Assets
Sunk cost
Inside lag
11. 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.
Automatic stabilizers
Excess Supply
Congressional budget office
Anchored inflation expectations
12. The monetary sector focuses on the ________ rate.
Aggregate supply shock
Marginal benefit
Interest
Capital goods
13. The total planned spending on final goods and services.
Businesses
Capital income
Planned aggregate expenditure (PAE)
Consumption function
14. The output per employed worker
Labor productivity
Disinflation
Complement
Keynesian model
15. 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.
Disinflation
Law of Diminishing Marginal Utility
Recession
Normative analysis
16. Concerned with analyzing whether or not a policy should be used.
Normative analysis
The Wealth Effect
Gross Domestic Product (GDP)
Hyperinflation
17. Unicorporated entity that has shared ownership.
Core rate of inflation
Partnership
The real GDP per person
LRAS
18. The lowest point of the recession
Inside lag
Trough
Labor supply
Lorenz curve
19. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
The Wealth Effect
Labor supply
Aggregate Supply
20. The difference between the price received by the seller and the seller's reservation price
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21. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
NRU
Structural unemployment
Intangible Assets
Keynesian economic theory
22. Legal entity that has received a charter from a state or federal government.
Buyer's surplus
Core rate of inflation
Economic efficiency
Corporation
23. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Consumption function
Quantity equation
Core rate of inflation
Businesses
24. A policy that affects potential output
Labor supply
Supply-side policy
Reservation price
Worker mobility
25. The goods and services sector focuses largely on the level of ______ .
Command economic system
Income
The principle of efficiency
Partnership
26. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Boom
Economic efficiency
Asset
Okun's Law
27. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Marginal tax rate
decreases increases
Stabilization policies
Mixed market
28. Caused by changes in the overall economy.
Cyclical unemployment
Quantity equation
Real quantity
Laffer curve
29. Extreme economic growth
Aggregate demand
Deflation
Intangible Assets
Boom
30. When people's expectations of future inflation do not change even though inflation rates change.
Fisher effect
Anchored inflation expectations
Velocity
Buyer's surplus
31. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
The Wealth Effect
Substitution bias
Exchange
32. The speed that money changes hands in order to buy and sell final goods and services.
NRU
Velocity
Credibility of monetary policy
Tangible Assets
33. The real cost of changing a listed price.
Economic efficiency
Interest
Indexing
Menu cost
34. A free market system that relies on private property ownership and supply and demand
Autonomous Expenditure
Capitalism
Marginal cost
Price
35. The government office that is responsible for projecting federal surpluses and deficits
Labor unions
Partnership
Congressional budget office
Stabilization policies
36. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Worker mobility
Saving
Capital goods
37. The beginning of a recession
Buyer's surplus
Law of Demand
Business cycle
Peak
38. 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.
Worker mobility
Substitution bias
Law of Supply
Stabilization policies
39. A macroeconomic policy that directly affects the structure and various institutions of an economy
Autonomous Expenditure
Substitution bias
Structural policy
Trough
40. (n) something of value; a resource; an advantage
The real GDP per person
Asset
Inflationary gap
Partnership
41. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases
Credibility of monetary policy
Substitution bias
Law of Demand
Equilibrium price
42. The international sector emphasizes the ________ rate.
Capital goods
Inflation shock
Monetarism
Exchange
43. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Business cycle
Gross National Product (GNP)
Fisher effect
Short run equilibrium output
44. Goods not counted in the nation's GDP.
Cyclical unemployment
Velocity
Intermediate Goods
Liquidity
45. 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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46. When prices fall consistently over time - leading to negative inflation.
Deflation
Credibility of monetary policy
Traditional economic system
Indexing
47. The slow change in inflation from year to year in industrialized nations
Saving
Real GDP
Fractional
Inflation inertia
48. The adding up of individual economic variables to obtain a large - general picture of the economy.
Economic efficiency
Structural unemployment
Aggregation
Capitalism
49. The degree to which people have access to goods and services that make their lives better.
Deflation
Standard of living
Traditional economic system
Rationing
50. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Anchored inflation expectations
Free market
Disinflation
AD curve intersects the SAS curve