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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. Real Estate - Equipment - and Cash (physical assets)
Tangible Assets
Quantity equation
Gross National Product (GNP)
Participation rate
2. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Potential output
Consumption
AD curve intersects the SAS curve
3. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.
Marginal benefit
Phillips curve
Command economic system
Relative price
4. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Phillips curve
decreases increases
Asset
5. The degree to which people have access to goods and services that make their lives better.
The quality adjustment bias
NRU
Sunk cost
Standard of living
6. Used in the production of final goods - but instead of being consumed - are available for reuse.
Income
Fisher effect
Substitution bias
Capital goods
7. When people's expectations of future inflation do not change even though inflation rates change.
Real employment
Aggregate supply shock
Aggregate demand
Anchored inflation expectations
8. A large - unexpected change in the cost of resources.
Capital income
Complement
Aggregate supply shock
Credibility of monetary policy
9. The continuing increase in the average level of prices of goods and services over time.
Inflation
Intermediate Goods
Market equilibrium
Fisher effect
10. Government policies aimed at stabilizing the economy by eliminating output gaps
The Wealth Effect
Sunk cost
The principle of efficiency
Stabilization policies
11. Natural Rate of Unemployment - a rate that will always exist
NRU
Pay
Marginal tax rate
Frictional unemployment
12. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.
Law of Supply
Sole proprietorship
Law of Demand
Complement
13. The monetary sector focuses on the ________ rate.
Traditional economic system
Economic efficiency
Lorenz curve
Interest
14. 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.
Law of Diminishing Marginal Utility
Interest
Unemployment insurance
Fractional
15. The maximum amount that an economy can output over a period of time
Intangible Assets
Potential output
Automatic stabilizers
Structural unemployment
16. The total value of goods and services produced in a country valued at current prices.
Okun's Law
Corporation
Nominal GDP
Intangible Assets
17. The output per employed worker
Command economic system
Boom
Marginal tax rate
Labor productivity
18. Extreme economic growth
Peak
Partnership
Boom
Unemployment insurance
19. Goods like food and clothing that have a short lifespan.
Consumer Nondurables
Supply-side policy
Total surplus
Intermediate goods
20. The government office that is responsible for projecting federal surpluses and deficits
Congressional budget office
Liquidity
Worker mobility
Deflation
21. There is an ___________ ___ when aggregate output is above potential output
Sole proprietorship
Planned aggregate expenditure (PAE)
Boom
Inflationary gap
22. The price of a good or service in relation to the price of other goods and services.
Intangible Assets
Businesses
Relative price
Phillips curve
23. The level of output where output equals planned aggregate expenditure
Short run equilibrium output
Intermediate goods
Free market
The rate of inflation
24. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Macroeconomics
Seller's reservation price
Expansionary policies
25. 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
Pay
Law of Supply
Cyclical unemployment
26. Most free-market banking systems are based on __________ reserves.
Fractional
Keynesian economic theory
Consumption
Sole proprietorship
27. The increase in total benefit that comes from producing one additional unit.
Law of Supply
Okun's Law
Inflation
Marginal benefit
28. Unicorporated entity that has shared ownership.
Aggregation
Keynesian model
Labor unions
Partnership
29. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Recession
Output gap
Outside lag
Structural policy
30. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Congressional budget office
Four sectors of the economy
Nominal GDP
31. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Inside lag
Economic efficiency
Law of Diminishing Marginal Utility
The principle of efficiency
32. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fisher effect
Gross Domestic Product (GDP)
Consumption function
Intangible Assets
33. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Average tax rate
Partnership
decreases increases
Businesses
34. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Keynesian economic theory
Automatic stabilizers
Command economic system
35. An increase in spending due to a perceived increase in wealth.
Labor productivity
Labor productivity
Capital goods
The Wealth Effect
36. Payments that the government makes to unemployed workers.
Unemployment insurance
Nominal GDP
Law of Supply
Core rate of inflation
37. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Monopsony
Aggregation
Exchange
Aggregate Supply
38. 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.
Normative analysis
Traditional economic system
Hyperinflation
Monetarism
39. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Asset
Substitution bias
Inflationary gap
Consumption
40. The goods and services sector focuses largely on the level of ______ .
Income
Cyclical unemployment
decreases increases
NRU
41. The amount of workers that are willing to work for a real wage.
Interest
Complement
Command economic system
Labor supply
42. Legal entity that has received a charter from a state or federal government.
Corporation
Potential output
Policy reaction function
Real quantity
43. A free market system that relies on private property ownership and supply and demand
LRAS
Capitalism
Velocity
Income
44. The total planned spending on final goods and services.
Stabilization policies
Planned aggregate expenditure (PAE)
Fractional
Marginal tax rate
45. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross Domestic Product (GDP)
Gross National Product (GNP)
Excess Supply
Exchange
46. 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
Marginal benefit
Structural unemployment
Frictional unemployment
Monetarism
47. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Policy reaction function
Structural policy
Income
Socially optimal quantity
48. The movement of workers between jobs - companies - and industries
Price
Inflation
Worker mobility
Intermediate goods
49. The rate of price increase on all things except food and energy
Core rate of inflation
Aggregation
Anchored inflation expectations
Labor productivity
50. 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.
Monetarism
decreases increases
Equilibrium price
Law of Supply