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






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






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






4. 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






5. Goods not counted in the nation's GDP.






6. Organizations that act as moderators between employers and employees






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






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






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






10. When inflation suddenly deviates from its normal course.






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






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

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13. Extreme economic growth






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






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






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






17. Combines pure market and command. Example: Japan






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






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






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






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






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






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






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






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






26. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






27. 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.






28. Unicorporated entity that has shared ownership.






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






30. 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






31. 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.






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






33. 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.






34. The labor sector highlights the rate of ____ .






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






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






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






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






39. That efficiency leads to economic prosperity for all.






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






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






42. 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.






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






44. 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.






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






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






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






48. Payments that the government makes to unemployed workers.






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






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