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






2. 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).






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






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






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






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






7. Money multiplied by velocity equals nominal GDP.






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






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






10. 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.






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






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






13. Payments that the government makes to unemployed workers.






14. The level of output where output equals planned aggregate expenditure






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






16. That efficiency leads to economic prosperity for all.






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






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






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






20. When inflation suddenly deviates from its normal course.






21. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






22. The international sector emphasizes the ________ rate.






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






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






25. 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.






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






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






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






29. 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.






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






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






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






33. Caused by changes in the overall economy.






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






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






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






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






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






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






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






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






42. Total supply of goods and services in an economy






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






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






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






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






47. 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






48. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






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






50. 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.