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






2. A record of economic increases and decreases over time.






3. Government policies intended to increase spending and output.






4. When the rate of inflation is extremely high.






5. When an economic unit makes more than it spends






6. 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.






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






8. That efficiency leads to economic prosperity for all.






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






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






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






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






13. Unicorporated entity that has shared ownership.






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






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






16. 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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17. The slow change in inflation from year to year in industrialized nations






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






19. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






21. 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.






22. 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






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






24. A policy that affects potential output






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






26. 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.






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






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






29. 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






30. Payments that the government makes to unemployed workers.






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






32. The monetary sector focuses on the ________ rate.






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






34. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






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






37. 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.






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






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






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






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






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






43. Caused by changes in the overall economy.






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






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






46. 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






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






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






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

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50. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)