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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. There is an ___________ ___ when aggregate output is above potential output
Marginal cost
The Wealth Effect
Inflationary gap
Adam Smith
2. A macroeconomic policy that directly affects the structure and various institutions of an economy
Aggregate demand
Free market
Keynesian economic theory
Structural policy
3. The goods and services sector focuses largely on the level of ______ .
Seller's surplus
AD curve intersects the SAS curve
Income
Expansionary policies
4. The degree to which people have access to goods and services that make their lives better.
Automatic stabilizers
Potential output
Short run equilibrium output
Standard of living
5. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
The Wealth Effect
Exchange
Aggregate demand
NRU
6. Used to demonstrate shifts in income distribution among a population over time.
Aggregate supply
Lorenz curve
Seller's reservation price
Monetarism
7. Unicorporated entity that has shared ownership.
Tangible Assets
Output gap
Four sectors of the economy
Partnership
8. Goods not counted in the nation's GDP.
Labor productivity
Four sectors of the economy
Traditional economic system
Intermediate Goods
9. The difference between the price received by the seller and the seller's reservation price
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10. The labor sector highlights the rate of ____ .
Income
Pay
Substitution bias
Market equilibrium
11. 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
Command economic system
Aggregation
Congressional budget office
12. Business entity which legally has no separate existence from its owner.
Business cycle
Autonomous Expenditure
Inflation shock
Sole proprietorship
13. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Worker mobility
Total surplus
Equilibrium price
Mixed market
14. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
The real GDP per person
Real quantity
Peak
Complement
15. A policy that affects potential output
Substitution bias
Supply-side policy
The Wealth Effect
Saving
16. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Fractional
Participation rate
Keynesian economic theory
Stabilization policies
17. The total value of goods and services produced in a country valued at current prices.
Invisible hand
Nominal GDP
Trough
Normative analysis
18. 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
Monetarism
Capital income
Supply-side policy
The quality adjustment bias
19. The speed that money changes hands in order to buy and sell final goods and services.
The rate of inflation
Velocity
Saving
Labor unions
20. Extreme economic growth
Boom
Substitution effect
Income
Business cycle
21. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).
Hyperinflation
Frictional unemployment
Tangible Assets
Average tax rate
22. That efficiency leads to economic prosperity for all.
Unemployment insurance
The principle of efficiency
Gross National Product (GNP)
Socially optimal quantity
23. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Corporation
Capital goods
Velocity
Rationing
24. Concerned with analyzing whether or not a policy should be used.
Contractionary policies
Law of Diminishing Marginal Utility
Autonomous Expenditure
Normative analysis
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.
Aggregate Supply
Potential output
Fisher effect
Law of Supply
26. The movement of workers between jobs - companies - and industries
Marginal cost
Standard of living
Asset
Worker mobility
27. A measure of overall price levels at a specific point in the price index.
Exchange
Price level
LRAS
Autonomous Expenditure
28. Goods like food and clothing that have a short lifespan.
Invisible hand
Consumer Nondurables
Capital goods
Disinflation
29. A free market system that relies on private property ownership and supply and demand
Capitalism
Macroeconomics
Cyclical unemployment
Planned aggregate expenditure (PAE)
30. The adding up of individual economic variables to obtain a large - general picture of the economy.
Real GDP
Aggregation
Partnership
Relative price
31. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Normative analysis
Free market
Contractionary policies
Disinflation
32. 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.
Tangible Assets
Real employment
Liquidity
Hyperinflation
33. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Marginal benefit
The quality adjustment bias
Unemployment insurance
Cyclical unemployment
34. Legal entity that has received a charter from a state or federal government.
Labor supply
Corporation
Asset
Monopsony
35. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Tangible Assets
Partnership
Aggregate supply
36. An increase in spending due to a perceived increase in wealth.
Market equilibrium
Labor supply
Interest
The Wealth Effect
37. Represents the governmental tax rate that will best maximize tax revenues.
Buyer's surplus
Congressional budget office
Labor productivity
Laffer curve
38. The price of a good or service in relation to the price of other goods and services.
Relative price
Business cycle
Inflationary gap
Policy reaction function
39. The slow change in inflation from year to year in industrialized nations
Aggregate supply shock
Average tax rate
Inflation inertia
Keynesian economic theory
40. 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.
Command economic system
Core rate of inflation
AD curve intersects the SAS curve
Asset
41. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Potential output
Menu cost
Keynesian model
Price
42. Patents - Goodwill - and Trademarks (lack physical substance)
Economic efficiency
Structural unemployment
Aggregate supply shock
Intangible Assets
43. The increase in total benefit that comes from producing one additional unit.
Anchored inflation expectations
Invisible hand
Marginal benefit
Recession
44. A result of there only being one buyer of a resource input - good - or service.
Hyperinflation
Monopsony
Free market
Macroeconomics
45. The time between the need for a macroeconomic policy and its implementation
Inside lag
Cyclical unemployment
Interest
Trough
46. Total tax paid divided by total (taxable) income - as a percentage.
Inflationary gap
The principle of efficiency
Average tax rate
Inflation shock
47. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Law of Diminishing Marginal Utility
Aggregate Supply
Seller's surplus
Planned aggregate expenditure (PAE)
48. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Average tax rate
The real GDP per person
Planned aggregate expenditure (PAE)
Aggregate Supply
49. 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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50. The monetary sector focuses on the ________ rate.
Command economic system
AD curve intersects the SAS curve
Capital income
Interest