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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 difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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2. Natural Rate of Unemployment - a rate that will always exist






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






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






5. When the rate of inflation is extremely high.






6. Combines pure market and command. Example: Japan






7. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






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






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






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






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






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






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






20. The labor sector highlights the rate of ____ .






21. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






22. The beginning of a recession






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






24. Caused by changes in the overall economy.






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






26. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






28. When an economic unit makes more than it spends






29. The rise in taxes that occurs when before-tax income increases by one dollar






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






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






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






33. The monetary sector focuses on the ________ rate.






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






35. 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






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






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






38. 1 percent more unemployment results in 2 percent less output.

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39. 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.






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






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






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






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






44. The real cost of changing a listed price.






45. Unicorporated entity that has shared ownership.






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






47. Government policies intended to increase spending and output.






48. 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.






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






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