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






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






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






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






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






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






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






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






9. Government policies intended to increase spending and output.






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






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






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






13. 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






14. Total supply of goods and services in an economy






15. The international sector emphasizes the ________ rate.






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






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






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






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






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






21. The total value of goods and services produced in a country valued at current prices.






22. Caused by changes in the overall economy.






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






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






25. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






26. 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.






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






28. 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.






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






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






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






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






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






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






35. 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.






36. The time between the need for a macroeconomic policy and its implementation






37. That efficiency leads to economic prosperity for all.






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






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






40. 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






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






42. Unicorporated entity that has shared ownership.






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






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






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






46. The output per employed worker






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






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






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






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