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






2. Payments that the government makes to unemployed workers.






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






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






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






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






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






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






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






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






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






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






13. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






14. When the rate of inflation is extremely high.






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






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






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






18. The international sector emphasizes the ________ rate.






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






20. A policy that affects potential output






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






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






23. The real cost of changing a listed price.






24. When an economic unit makes more than it spends






25. The annual percentage rate of change in price level reflected by price indexes






26. Organizations that act as moderators between employers and employees






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






28. That efficiency leads to economic prosperity for all.






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






30. The beginning of a recession






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






32. When inflation suddenly deviates from its normal course.






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






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






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






36. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






37. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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

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43. 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.






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






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






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






47. 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.






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






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






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