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






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






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






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






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






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






7. Total tax paid divided by total (taxable) income - as a percentage.






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






9. Organizations that act as moderators between employers and employees






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






11. The movement of workers between jobs - companies - and industries






12. 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.






13. Most free-market banking systems are based on __________ reserves.






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






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






16. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






18. When prices fall consistently over time - leading to negative inflation.






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






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






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






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






24. 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).






25. When inflation suddenly deviates from its normal course.






26. Unicorporated entity that has shared ownership.






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






28. That efficiency leads to economic prosperity for all.






29. The labor sector highlights the rate of ____ .






30. 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.






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






32. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






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






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






36. Total supply of goods and services in an economy






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






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






39. The output per employed worker






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






41. 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.






42. An increase in spending due to a perceived increase in wealth.






43. Caused by changes in the overall economy.






44. When the rate of inflation is extremely high.






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






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






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






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






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






50. Payments that the government makes to unemployed workers.