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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. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Exchange
Unemployment insurance
Liquidity
Economic efficiency
2. The beginning of a recession
Peak
Aggregation
Inflation inertia
Interest
3. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.
Monopsony
NRU
Seller's reservation price
Contractionary policies
4. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Phillips curve
Marginal tax rate
Sunk cost
5. The amount of workers that are willing to work for a real wage.
Inflation inertia
Total surplus
The real GDP per person
Labor supply
6. The output per employed worker
Boom
Standard of living
Labor productivity
Income
7. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
Complement
Quantity equation
Hyperinflation
8. When the rate of inflation is extremely high.
Income
Complement
Real quantity
Hyperinflation
9. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Autonomous Expenditure
Total surplus
Complement
decreases increases
10. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Potential output
Asset
Structural unemployment
Price
11. Goods not counted in the nation's GDP.
Adam Smith
Intermediate Goods
Free market
Liquidity
12. Patents - Goodwill - and Trademarks (lack physical substance)
Invisible hand
Traditional economic system
Intangible Assets
Keynesian model
13. Maximum price that a customer is willing to pay for a good
Reservation price
Corporation
Price level
Policy reaction function
14. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.
Real GDP
Phillips curve
Gross Domestic Product (GDP)
Hyperinflation
15. Total tax paid divided by total (taxable) income - as a percentage.
Gross National Product (GNP)
Partnership
Average tax rate
Hyperinflation
16. The goods and services sector focuses largely on the level of ______ .
Marginal cost
Expansionary policies
Structural unemployment
Income
17. When inflation suddenly deviates from its normal course.
Inflation shock
Labor supply
Substitution effect
Structural policy
18. A macroeconomic policy that directly affects the structure and various institutions of an economy
Aggregate supply shock
Law of Diminishing Marginal Utility
Trough
Structural policy
19. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fisher effect
Law of Diminishing Marginal Utility
Partnership
Marginal benefit
20. Combines pure market and command. Example: Japan
Fractional
The principle of efficiency
Mixed market
Traditional economic system
21. 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
The rate of inflation
Automatic stabilizers
Substitution bias
The principle of efficiency
22. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Buyer's surplus
Mixed market
Average tax rate
23. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Price level
Price
The quality adjustment bias
Corporation
24. The government office that is responsible for projecting federal surpluses and deficits
Automatic stabilizers
Congressional budget office
Supply-side policy
Aggregation
25. Used in the production of final goods - but instead of being consumed - are available for reuse.
Real quantity
Capitalism
Inside lag
Capital goods
26. Organizations that act as moderators between employers and employees
Consumption
Labor unions
Intangible Assets
Congressional budget office
27. The ease with which an asset can be converted to currency.
Liquidity
Four sectors of the economy
Potential output
Businesses
28. (n) something of value; a resource; an advantage
Consumption
Inflation
Asset
Four sectors of the economy
29. A policy that affects potential output
Supply-side policy
Hyperinflation
Lorenz curve
Quantity equation
30. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Complement
Real quantity
Market equilibrium
decreases increases
31. The price of a good or service in relation to the price of other goods and services.
Relative price
Short run equilibrium output
Sunk cost
Potential output
32. Government policies intended to increase spending and output.
Expansionary policies
Frictional unemployment
Short run equilibrium output
Monopsony
33. Caused by changes in the overall economy.
Four sectors of the economy
Labor productivity
Standard of living
Cyclical unemployment
34. The portion of planned aggregate expenditure that is not based on output
Intermediate Goods
Autonomous Expenditure
Quantity equation
Seller's surplus
35. 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.
Traditional economic system
Macroeconomics
The quality adjustment bias
Peak
36. Natural Rate of Unemployment - a rate that will always exist
Intermediate goods
NRU
Inflation shock
AD curve intersects the SAS curve
37. A record of economic increases and decreases over time.
Real employment
Boom
Price level
Business cycle
38. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Deflation
Monopsony
Relative price
39. The maximum amount that an economy can output over a period of time
Menu cost
Potential output
Law of Demand
Liquidity
40. 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.
Credibility of monetary policy
Law of Supply
Four sectors of the economy
Nominal GDP
41. Total supply of goods and services in an economy
Labor unions
Outside lag
Monopsony
Aggregate supply
42. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Trough
Marginal cost
Reservation price
43. Used to demonstrate shifts in income distribution among a population over time.
Business cycle
Lorenz curve
Indexing
Cyclical unemployment
44. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Intermediate Goods
Consumption
Free market
Interest
45. Goods and services sector - Labor sector - monetary sector - international sector.
Labor supply
Four sectors of the economy
Autonomous Expenditure
Aggregate supply
46. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Capital goods
Structural policy
Potential output
47. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Excess Supply
Structural policy
LRAS
48. A measure of overall price levels at a specific point in the price index.
The real GDP per person
Price level
Invisible hand
Consumption function
49. A Scottish man (1723-1790) who is known as the father of modern economics.
NRU
Quantity equation
Business cycle
Adam Smith
50. The percentage of working-age people within the labor force
Contractionary policies
Liquidity
Participation rate
Equilibrium price