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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. 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.






2. 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.






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






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






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






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






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






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






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






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






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






12. 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.






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






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






15. Money multiplied by velocity equals nominal GDP.






16. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






17. The monetary sector focuses on the ________ rate.






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






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






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






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






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






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

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






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






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






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






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






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






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






31. Payments that the government makes to unemployed workers.






32. 1 percent more unemployment results in 2 percent less output.

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






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






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






36. The output per employed worker






37. 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.






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






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






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






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






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






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






44. Caused by changes in the overall economy.






45. 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






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






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






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






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






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







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Can you answer 50 questions in 15 minutes?


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