SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. A large - unexpected change in the cost of resources.
Inflation shock
Corporation
Aggregate supply shock
Planned aggregate expenditure (PAE)
2. Concerned with analyzing whether or not a policy should be used.
Command economic system
Trough
Normative analysis
Inflationary gap
3. Combines pure market and command. Example: Japan
Quantity equation
Mixed market
Keynesian model
Command economic system
4. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Total surplus
Economic efficiency
Mixed market
Inflationary gap
5. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
The principle of efficiency
Structural policy
Policy reaction function
Recession
6. When the rate of inflation is extremely high.
The quality adjustment bias
Hyperinflation
Labor productivity
Total surplus
7. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
8. Extreme economic growth
Mixed market
The principle of efficiency
Equilibrium price
Boom
9. 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.
Peak
Command economic system
Participation rate
Real employment
10. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Monetarism
Gross National Product (GNP)
Price
Inflation shock
11. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Income
Keynesian economic theory
Interest
Pay
12. Used to demonstrate shifts in income distribution among a population over time.
Command economic system
Lorenz curve
The rate of inflation
Boom
13. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Nominal GDP
Inflation shock
Sole proprietorship
14. The real cost of changing a listed price.
Menu cost
The quality adjustment bias
Fisher effect
Nominal GDP
15. The annual percentage rate of change in price level reflected by price indexes
Intermediate Goods
Consumption
The rate of inflation
Law of Demand
16. That efficiency leads to economic prosperity for all.
Price
The principle of efficiency
Structural unemployment
The rate of inflation
17. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Tangible Assets
Labor productivity
Mixed market
18. Goods that are used in the production of final goods.
Intermediate goods
Short run equilibrium output
Price
Macroeconomics
19. 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.
Law of Supply
Core rate of inflation
Gross Domestic Product (GDP)
Lorenz curve
20. 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.
Consumption function
Contractionary policies
Indexing
Substitution effect
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
Substitution bias
Intermediate Goods
Phillips curve
The quality adjustment bias
22. When inflation suddenly deviates from its normal course.
Inflation shock
Unemployment insurance
Capital goods
Menu cost
23. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Labor unions
Inside lag
Excess Supply
Contractionary policies
24. The beginning of a recession
Price level
Peak
Law of Diminishing Marginal Utility
Capital income
25. Maximum price that a customer is willing to pay for a good
Monetarism
Reservation price
Disinflation
Inflation shock
26. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
The principle of efficiency
Businesses
Aggregate supply
Disinflation
27. The increase in total benefit that comes from producing one additional unit.
Marginal cost
Inflation shock
Law of Diminishing Marginal Utility
Marginal benefit
28. The movement of workers between jobs - companies - and industries
Worker mobility
Standard of living
Aggregation
Intermediate Goods
29. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Recession
Law of Diminishing Marginal Utility
Seller's reservation price
30. 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.
Hyperinflation
Seller's reservation price
Invisible hand
Traditional economic system
31. A measure of overall price levels at a specific point in the price index.
Marginal benefit
Marginal tax rate
Price level
Businesses
32. The amount of workers that are willing to work for a real wage.
Adam Smith
Labor supply
Substitution bias
Disinflation
33. Most free-market banking systems are based on __________ reserves.
Fractional
AD curve intersects the SAS curve
Short run equilibrium output
Inflationary gap
34. 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
Lorenz curve
Labor supply
Real GDP
Economic efficiency
35. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
The real GDP per person
Capital income
Labor supply
Substitution effect
36. The basic assumption of this model is that in the short run - firms meet demand at present price.
Marginal tax rate
Monetarism
Keynesian model
Intermediate goods
37. The labor sector highlights the rate of ____ .
Congressional budget office
Pay
Law of Diminishing Marginal Utility
Macroeconomics
38. Government policies aimed at stabilizing the economy by eliminating output gaps
Socially optimal quantity
Mixed market
Stabilization policies
Business cycle
39. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Boom
Income
Fisher effect
40. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Exchange
The real GDP per person
Trough
41. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Marginal benefit
The rate of inflation
Aggregate demand
Consumer Nondurables
42. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply
Aggregate supply
Deflation
Monetarism
Law of Diminishing Marginal Utility
43. When an economic unit makes more than it spends
Inflationary gap
Saving
Monetarism
Aggregation
44. The price of a good or service in relation to the price of other goods and services.
Normative analysis
Cyclical unemployment
Boom
Relative price
45. A record of economic increases and decreases over time.
NRU
Labor unions
Partnership
Business cycle
46. Money multiplied by velocity equals nominal GDP.
Quantity equation
Marginal benefit
Aggregate supply
Cyclical unemployment
47. A quantity that is measured in real terms - the actual quantity of a good or service
Quantity equation
Consumption function
Businesses
Real quantity
48. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Marginal tax rate
Excess Supply
Fisher effect
Aggregate supply shock
49. Government policies intended to increase spending and output.
Aggregate supply shock
Output gap
Expansionary policies
Average tax rate
50. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Inflation inertia
Consumption function
Hyperinflation