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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 beginning of a recession






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






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






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






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






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






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






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






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






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






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






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






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. The real cost of changing a listed price.






15. When inflation suddenly deviates from its normal course.






16. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






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






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






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






20. 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.






21. 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






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






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






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






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






26. A policy that affects potential output






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






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






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






30. The international sector emphasizes the ________ rate.






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






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






33. Payments that the government makes to unemployed workers.






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






35. Money multiplied by velocity equals nominal GDP.






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






37. The price of a good or service in relation to the price of other goods and services.






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






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






40. 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.






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






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






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






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






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






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






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






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






49. When an economic unit makes more than it spends






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







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