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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. Unicorporated entity that has shared ownership.






2. The beginning of a recession






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






4. A record of economic increases and decreases over time.






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






6. 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.






7. When people's expectations of future inflation do not change even though inflation rates change.






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






9. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






10. When both producers and consumers are satisfied with their quantities at market price.






11. 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.






12. The lowest point of the recession






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






14. The international sector emphasizes the ________ rate.






15. When an economic unit makes more than it spends






16. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






17. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






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






19. 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






20. Payments that the government makes to unemployed workers.






21. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






23. Maximum price that a customer is willing to pay for a good






24. The labor sector highlights the rate of ____ .






25. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






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






27. The goods and services sector focuses largely on the level of ______ .






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






29. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






31. An increase in this would cause an increase in the aggregate supply






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






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






34. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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35. Legal entity that has received a charter from a state or federal government.






36. That efficiency leads to economic prosperity for all.






37. The price of a good or service in relation to the price of other goods and services.






38. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






39. 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.






40. A policy that affects potential output






41. The total planned spending on final goods and services.






42. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.






43. Used to demonstrate shifts in income distribution among a population over time.






44. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






45. 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.






46. When the rate of inflation is extremely high.






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






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






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






50. Government policies intended to increase spending and output.