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CLEP Macroeconomics - 3

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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 government office that is responsible for projecting federal surpluses and deficits

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

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

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

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

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

7. Government policies intended to increase spending and output.

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

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

10. Unicorporated entity that has shared ownership.

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

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

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

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

15. A policy that affects potential output

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

17. 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.

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

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

20. The beginning of a recession

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

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

23. 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

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

25. Payments that the government makes to unemployed workers.

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

27. When inflation suddenly deviates from its normal course.

28. The real cost of changing a listed price.

29. 1 percent more unemployment results in 2 percent less output.

30. 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.

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

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

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

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

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

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

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

38. That efficiency leads to economic prosperity for all.

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

40. When an economic unit makes more than it spends

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

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

43. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.

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

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

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

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

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

49. 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.

50. When the rate of inflation is extremely high.