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CLEP Macroeconomics - 3

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. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






2. 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.






3. 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.






4. Business entity which legally has no separate existence from its owner.






5. The continuing increase in the average level of prices of goods and services over time.






6. 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.






7. When inflation suddenly deviates from its normal course.






8. 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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9. The lowest point of the recession






10. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






11. A macroeconomic policy that directly affects the structure and various institutions of an economy






12. Natural Rate of Unemployment - a rate that will always exist






13. The time period between a policy's implementation and its desired effects on an economy.






14. Describes how the economy directly effects the actions policymakers take.






15. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






16. The amount of workers that are willing to work for a real wage.






17. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






18. The annual percentage rate of change in price level reflected by price indexes






19. Represents the governmental tax rate that will best maximize tax revenues.






20. Real Estate - Equipment - and Cash (physical assets)






21. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






22. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






23. The adding up of individual economic variables to obtain a large - general picture of the economy.






24. 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.






25. The maximum amount that an economy can output over a period of time






26. The slow change in inflation from year to year in industrialized nations






27. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






28. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






29. The international sector emphasizes the ________ rate.






30. Goods not counted in the nation's GDP.






31. 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.






32. Goods that are used in the production of final goods.






33. The level of output where output equals planned aggregate expenditure






34. 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.






35. Extreme economic growth






36. Goods and services sector - Labor sector - monetary sector - international sector.






37. (n) something of value; a resource; an advantage






38. The ease with which an asset can be converted to currency.






39. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






40. The time between the need for a macroeconomic policy and its implementation






41. The speed that money changes hands in order to buy and sell final goods and services.






42. Payments that the government makes to unemployed workers.






43. Unicorporated entity that has shared ownership.






44. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






45. The government office that is responsible for projecting federal surpluses and deficits






46. 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.






47. Used in the production of final goods - but instead of being consumed - are available for reuse.






48. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






49. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






50. Caused by changes in the overall economy.