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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. Patents - Goodwill - and Trademarks (lack physical substance)






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






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






4. 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.






5. 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.






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






7. 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.






8. The portion of planned aggregate expenditure that is not based on output






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






10. Extreme economic growth






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






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






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






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

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






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






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






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






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






20. 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.






21. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






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






23. The lowest point of the recession






24. When inflation suddenly deviates from its normal course.






25. 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.






26. 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.






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






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






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






30. Government policies intended to increase spending and output.






31. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






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






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






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






35. When the rate of inflation is extremely high.






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






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






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






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






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






41. Total supply of goods and services in an economy






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






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. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






46. That efficiency leads to economic prosperity for all.






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






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






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






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