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






3. A macroeconomic policy that directly affects the structure and various institutions of an economy






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






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






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






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






8. The real cost of changing a listed price.






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






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






11. A policy that affects potential output






12. 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).






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






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






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






16. 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.






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






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






19. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






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






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






22. Combines pure market and command. Example: Japan






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






24. 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.






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






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






27. When prices fall consistently over time - leading to negative inflation.






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






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

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






31. 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






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






33. When people's expectations of future inflation do not change even though inflation rates change.






34. 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.






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






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






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






38. Payments that the government makes to unemployed workers.






39. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






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






47. 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






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






49. 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






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