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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 economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






2. Unicorporated entity that has shared ownership.






3. 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.






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






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






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






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






8. When the rate of inflation is extremely high.






9. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






10. The percentage of working-age people within the labor force






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






12. Organizations that act as moderators between employers and employees






13. 1 percent more unemployment results in 2 percent less output.

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






15. The monetary sector focuses on the ________ rate.






16. 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.






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






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






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






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






21. A measure of overall price levels at a specific point in the price index.






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






23. 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






24. A policy that affects potential output






25. 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.






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






27. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






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






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






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






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






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






35. The output per employed worker






36. Combines pure market and command. Example: Japan






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






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






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






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






41. 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.






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






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






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






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






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

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47. The real cost of changing a listed price.






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






49. Government policies aimed at stabilizing the economy by eliminating output gaps






50. The lowest point of the recession