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






2. 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.






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






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






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






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






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






8. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






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






10. 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.






11. When an economic unit makes more than it spends






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






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






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






15. 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.






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






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






18. That efficiency leads to economic prosperity for all.






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






20. 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.






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






22. The percentage of working-age people within the labor force






23. 1 percent more unemployment results in 2 percent less output.

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






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






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






27. 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.






28. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






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 beginning of a recession






33. Caused by changes in the overall economy.






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






35. 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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36. The real cost of changing a listed price.






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






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






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






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






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






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






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






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






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






46. 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.






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






48. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal






49. The output per employed worker






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