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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. When an economic unit makes more than it spends






2. Unicorporated entity that has shared ownership.






3. There is an ___________ ___ when aggregate output is above potential output






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






5. 1 percent more unemployment results in 2 percent less output.

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6. That efficiency leads to economic prosperity for all.






7. 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.






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






9. The relationship between disposable income and spending on consumable goods and services






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






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






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






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






14. When inflation suddenly deviates from its normal course.






15. The rate of price increase on all things except food and energy






16. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






17. Patents - Goodwill - and Trademarks (lack physical substance)






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






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






20. Organizations that act as moderators between employers and employees






21. The real cost of changing a listed price.






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






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






24. Extreme economic growth






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






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






27. 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.






28. 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






29. The part of economics study that looks at the operation of a nation's economy as a whole






30. 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.






31. The labor sector highlights the rate of ____ .






32. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






33. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






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






35. The total value of goods and services produced in a country valued at current prices.






36. Combines pure market and command. Example: Japan






37. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






38. The beginning of a recession






39. The lowest point of the recession






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






41. The international sector emphasizes the ________ rate.






42. The difference between the price received by the seller and the seller's reservation price

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43. Goods like food and clothing that have a short lifespan.






44. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






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






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






47. A quantity that is measured in real terms - the actual quantity of a good or service






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






49. When the people believe that the nation's central bank will keep inflation rates low.






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