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






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






3. 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.






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






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






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






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






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






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






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






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






12. 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.






13. The monetary sector focuses on the ________ rate.






14. 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.






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






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






17. The output per employed worker






18. Extreme economic growth






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






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






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






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






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






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






25. 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.






26. Most free-market banking systems are based on __________ reserves.






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






28. Unicorporated entity that has shared ownership.






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






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






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






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






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






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






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






36. Payments that the government makes to unemployed workers.






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






38. 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.






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






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






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






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






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






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






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






46. 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






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






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






49. The rate of price increase on all things except food and energy






50. 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.