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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. Payments that the government makes to unemployed workers.






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






3. The beginning of a recession






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






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






6. 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.






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






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






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






10. Total supply of goods and services in an economy






11. The labor sector highlights the rate of ____ .






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






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






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






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






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






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






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






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






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






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






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






23. 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.






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






25. 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






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






27. 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.






28. A policy that affects potential output






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






30. When the rate of inflation is extremely high.






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






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






33. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






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






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






36. Goods and services sector - Labor sector - monetary sector - international sector.






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






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






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






40. 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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41. Government policies intended to increase spending and output.






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






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






45. 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.






46. Organizations that act as moderators between employers and employees






47. 1 percent more unemployment results in 2 percent less output.

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






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






50. 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.