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






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






3. The real cost of changing a listed price.






4. The output per employed worker






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






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

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






8. 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.






9. Organizations that act as moderators between employers and employees






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






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






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






13. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






20. 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.






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






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






23. 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.






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






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






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






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






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






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






31. 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.






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






33. Total supply of goods and services in an economy






34. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






35. 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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36. The level of output where output equals planned aggregate expenditure






37. 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






38. 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






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






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






41. 1 percent more unemployment results in 2 percent less output.

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






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






44. Payments that the government makes to unemployed workers.






45. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






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






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






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






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






50. When the rate of inflation is extremely high.