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






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






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






4. 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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5. Concerned with analyzing whether or not a policy should be used.






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






7. A Scottish man (1723-1790) who is known as the father of modern economics.






8. That efficiency leads to economic prosperity for all.






9. 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






10. When inflation suddenly deviates from its normal course.






11. Government policies intended to increase spending and output.






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






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






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






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






16. The labor sector highlights the rate of ____ .






17. 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).






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






19. Payments that the government makes to unemployed workers.






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






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






23. The real cost of changing a listed price.






24. The increase in total benefit that comes from producing one additional unit.






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






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






27. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






29. A free market system that relies on private property ownership and supply and demand






30. A result of there only being one buyer of a resource input - good - or service.






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






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






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






34. The degree to which people have access to goods and services that make their lives better.






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






36. Total supply of goods and services in an economy






37. The portion of planned aggregate expenditure that is not based on output






38. A large - unexpected change in the cost of resources.






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






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






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






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






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






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






45. 1 percent more unemployment results in 2 percent less output.

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






47. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






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






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






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