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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. The ease with which an asset can be converted to currency.
Liquidity
Average tax rate
Keynesian model
Rationing
2. Combines pure market and command. Example: Japan
Mixed market
Complement
Outside lag
Consumption
3. A Scottish man (1723-1790) who is known as the father of modern economics.
The principle of efficiency
Adam Smith
Partnership
decreases increases
4. When an economic unit makes more than it spends
Saving
Laffer curve
Real employment
Structural unemployment
5. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Keynesian model
Contractionary policies
Disinflation
Rationing
6. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
decreases increases
Business cycle
Structural unemployment
Inflation inertia
7. Used in the production of final goods - but instead of being consumed - are available for reuse.
Price
Capital goods
Liquidity
Fisher effect
8. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Free market
Total surplus
Substitution effect
9. A free market system that relies on private property ownership and supply and demand
Law of Diminishing Marginal Utility
Capitalism
Monopsony
Labor unions
10. 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.
Inflationary gap
Equilibrium price
Labor unions
The real GDP per person
11. Extreme economic growth
Nominal GDP
Autonomous Expenditure
Real quantity
Boom
12. Organizations that act as moderators between employers and employees
Labor unions
Intangible Assets
Recession
Keynesian model
13. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Intangible Assets
Marginal cost
Unemployment insurance
Socially optimal quantity
14. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Aggregate demand
Structural policy
Normative analysis
Capital income
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.
The quality adjustment bias
Law of Diminishing Marginal Utility
Corporation
Sole proprietorship
16. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Unemployment insurance
Economic efficiency
Sole proprietorship
Gross National Product (GNP)
17. The goods and services sector focuses largely on the level of ______ .
Income
Fisher effect
The Wealth Effect
Capital goods
18. When prices fall consistently over time - leading to negative inflation.
Command economic system
Socially optimal quantity
decreases increases
Deflation
19. Legal entity that has received a charter from a state or federal government.
LRAS
Corporation
Intermediate Goods
Velocity
20. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Real employment
Fisher effect
Socially optimal quantity
21. A result of there only being one buyer of a resource input - good - or service.
Law of Supply
Disinflation
Monopsony
Sole proprietorship
22. The price of a good or service in relation to the price of other goods and services.
Relative price
Structural policy
Buyer's surplus
Substitution bias
23. The speed that money changes hands in order to buy and sell final goods and services.
Asset
Velocity
Aggregate supply
Structural unemployment
24. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
LRAS
Substitution effect
Real employment
Labor unions
25. 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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26. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Monetarism
Price
Total surplus
Unemployment insurance
27. 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.
Standard of living
Unemployment insurance
Corporation
Gross Domestic Product (GDP)
28. The real cost of changing a listed price.
Saving
Supply-side policy
Automatic stabilizers
Menu cost
29. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Monopsony
LRAS
Phillips curve
Law of Demand
30. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Hyperinflation
Supply-side policy
Anchored inflation expectations
31. 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.
Short run equilibrium output
Cyclical unemployment
Real employment
Capital income
32. The rise in taxes that occurs when before-tax income increases by one dollar
Worker mobility
NRU
Marginal tax rate
Average tax rate
33. 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.
Marginal tax rate
Traditional economic system
Structural policy
The real GDP per person
34. Real Estate - Equipment - and Cash (physical assets)
Seller's reservation price
Saving
Menu cost
Tangible Assets
35. The international sector emphasizes the ________ rate.
Exchange
Sole proprietorship
Capital goods
Planned aggregate expenditure (PAE)
36. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Participation rate
Consumption function
Total surplus
Peak
37. Concerned with analyzing whether or not a policy should be used.
Aggregate supply shock
Normative analysis
Keynesian economic theory
Laffer curve
38. Maximum price that a customer is willing to pay for a good
Reservation price
Aggregate Supply
Unemployment insurance
Partnership
39. That efficiency leads to economic prosperity for all.
Potential output
Normative analysis
Aggregate demand
The principle of efficiency
40. 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
The quality adjustment bias
Consumer Nondurables
Substitution bias
41. The percentage of working-age people within the labor force
Exchange
Participation rate
Liquidity
Substitution effect
42. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Core rate of inflation
Laffer curve
Gross Domestic Product (GDP)
43. 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.
Law of Diminishing Marginal Utility
Market equilibrium
Capitalism
Automatic stabilizers
44. The part of economics study that looks at the operation of a nation's economy as a whole
Keynesian model
Macroeconomics
Substitution bias
Expansionary policies
45. The movement of workers between jobs - companies - and industries
Inflation shock
Substitution bias
Inflationary gap
Worker mobility
46. A quantity that is measured in real terms - the actual quantity of a good or service
Menu cost
Tangible Assets
Real quantity
Velocity
47. Goods and services sector - Labor sector - monetary sector - international sector.
Four sectors of the economy
Business cycle
The Wealth Effect
Mixed market
48. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Peak
Consumer Nondurables
Indexing
Boom
49. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Price level
decreases increases
Seller's surplus
50. An increase in this would cause an increase in the aggregate supply
Labor productivity
decreases increases
Structural unemployment
Consumption