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






2. When inflation suddenly deviates from its normal course.






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






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






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






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






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






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






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






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

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11. The monetary sector focuses on the ________ rate.






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






13. The real cost of changing a listed price.






14. 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.






15. (n) something of value; a resource; an advantage






16. 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.






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






18. The international sector emphasizes the ________ rate.






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






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






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






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






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






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






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






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






27. 1 percent more unemployment results in 2 percent less output.

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






29. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






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






31. 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.






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






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






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






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






37. The beginning of a recession






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






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






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






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






42. 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






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






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






45. 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.






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






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






48. Organizations that act as moderators between employers and employees






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