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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. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Marginal benefit
Market equilibrium
Supply-side policy
The real GDP per person
2. 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.
Real employment
Four sectors of the economy
Rationing
Laffer curve
3. Concerned with analyzing whether or not a policy should be used.
Stabilization policies
Normative analysis
Aggregate demand
AD curve intersects the SAS curve
4. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Aggregate Supply
Rationing
Expansionary policies
decreases increases
5. 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
decreases increases
Monetarism
Substitution bias
Free market
6. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Equilibrium price
Rationing
Menu cost
Buyer's surplus
7. The increase in total benefit that comes from producing one additional unit.
Law of Supply
Pay
Deflation
Marginal benefit
8. Real Estate - Equipment - and Cash (physical assets)
Relative price
Okun's Law
Output gap
Tangible Assets
9. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Disinflation
Substitution effect
Marginal benefit
LRAS
10. The difference between the price received by the seller and the seller's reservation price
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11. Patents - Goodwill - and Trademarks (lack physical substance)
Liquidity
Participation rate
Menu cost
Intangible Assets
12. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Traditional economic system
Gross National Product (GNP)
Aggregate supply shock
Fisher effect
13. A free market system that relies on private property ownership and supply and demand
Inflationary gap
Normative analysis
Capitalism
Intangible Assets
14. 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.
Contractionary policies
Traditional economic system
Unemployment insurance
Fisher effect
15. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Rationing
Intermediate Goods
Capital goods
16. Represents the governmental tax rate that will best maximize tax revenues.
Stabilization policies
Laffer curve
Velocity
Business cycle
17. 1 percent more unemployment results in 2 percent less output.
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18. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Adam Smith
Total surplus
Policy reaction function
Disinflation
19. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Complement
Real quantity
Substitution bias
20. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Frictional unemployment
Indexing
Unemployment insurance
21. When inflation suddenly deviates from its normal course.
Gross National Product (GNP)
Inflation shock
Okun's Law
Corporation
22. 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.
Price level
Law of Supply
The principle of efficiency
Gross Domestic Product (GDP)
23. Total supply of goods and services in an economy
Rationing
Tangible Assets
Complement
Aggregate supply
24. The rate of price increase on all things except food and energy
Capital income
Peak
Price level
Core rate of inflation
25. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Consumption function
Substitution effect
Traditional economic system
Inflation inertia
26. The price of a good or service in relation to the price of other goods and services.
Partnership
Relative price
Rationing
Law of Diminishing Marginal Utility
27. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Sunk cost
Intermediate Goods
Corporation
28. The time between the need for a macroeconomic policy and its implementation
Inside lag
Credibility of monetary policy
Quantity equation
Aggregate demand
29. Maximum price that a customer is willing to pay for a good
decreases increases
Monopsony
Reservation price
Inflation shock
30. Natural Rate of Unemployment - a rate that will always exist
Peak
Participation rate
Consumption
NRU
31. Goods and services sector - Labor sector - monetary sector - international sector.
Quantity equation
Cyclical unemployment
Four sectors of the economy
Inflation inertia
32. A Scottish man (1723-1790) who is known as the father of modern economics.
Adam Smith
Structural policy
Velocity
Boom
33. 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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34. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Standard of living
Recession
The principle of efficiency
Frictional unemployment
35. The maximum amount that an economy can output over a period of time
Potential output
Stabilization policies
Aggregate demand
NRU
36. The labor sector highlights the rate of ____ .
Laffer curve
Four sectors of the economy
Pay
Interest
37. (n) something of value; a resource; an advantage
Fractional
Cyclical unemployment
Asset
Corporation
38. Legal entity that has received a charter from a state or federal government.
Market equilibrium
Business cycle
Velocity
Corporation
39. The real cost of changing a listed price.
Congressional budget office
Cyclical unemployment
Menu cost
Sunk cost
40. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Nominal GDP
Tangible Assets
Core rate of inflation
The quality adjustment bias
41. That efficiency leads to economic prosperity for all.
Labor productivity
Gross Domestic Product (GDP)
Unemployment insurance
The principle of efficiency
42. 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.
Economic efficiency
Output gap
Law of Supply
Asset
43. 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
Mixed market
Substitution bias
The principle of efficiency
Traditional economic system
44. There is an ___________ ___ when aggregate output is above potential output
AD curve intersects the SAS curve
Inflationary gap
Traditional economic system
Inflation inertia
45. The total planned spending on final goods and services.
Unemployment insurance
Monetarism
Planned aggregate expenditure (PAE)
Standard of living
46. Used to demonstrate shifts in income distribution among a population over time.
Laffer curve
Relative price
Marginal benefit
Lorenz curve
47. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Labor unions
Monetarism
Labor productivity
48. A quantity that is measured in real terms - the actual quantity of a good or service
Command economic system
Aggregate supply
Exchange
Real quantity
49. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Autonomous Expenditure
Planned aggregate expenditure (PAE)
Aggregate Supply
Keynesian economic theory
50. The lowest point of the recession
Trough
Labor productivity
Sole proprietorship
Aggregation