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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 government office that is responsible for projecting federal surpluses and deficits






2. When inflation suddenly deviates from its normal course.






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






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






5. 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.






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






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






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






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






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






11. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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






13. A quantity that is measured in real terms - the actual quantity of a good or service






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






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






16. The lowest point of the recession






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






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






19. When the rate of inflation is extremely high.






20. Payments that the government makes to unemployed workers.






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






22. 1 percent more unemployment results in 2 percent less output.

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






24. The output per employed worker






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






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






27. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






28. Combines pure market and command. Example: Japan






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






30. Money multiplied by velocity equals nominal GDP.






31. That efficiency leads to economic prosperity for all.






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






33. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






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






36. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






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






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






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






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






42. 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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43. 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.






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






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






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. Maximum price that a customer is willing to pay for a good






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

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






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