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






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






3. Total supply of goods and services in an economy






4. That efficiency leads to economic prosperity for all.






5. A policy that affects potential output






6. Government policies intended to increase spending and output.






7. There is an ___________ ___ when aggregate output is above potential output






8. Caused by changes in the overall economy.






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






10. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






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






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






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






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






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






16. Payments that the government makes to unemployed workers.






17. The total planned spending on final goods and services.






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






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






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






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






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






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






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






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






26. 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.






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






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






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






30. Unicorporated entity that has shared ownership.






31. The movement of workers between jobs - companies - and industries






32. The labor sector highlights the rate of ____ .






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






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






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






37. Combines pure market and command. Example: Japan






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






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






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






41. 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.






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






43. An increase in this would cause an increase in the aggregate supply






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






45. 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.






46. 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.






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






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






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






50. When inflation suddenly deviates from its normal course.