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






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






3. When an economic unit makes more than it spends






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






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






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






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






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






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






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






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






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






14. Represents the governmental tax rate that will best maximize tax revenues.






15. Unicorporated entity that has shared ownership.






16. The beginning of a recession






17. The time between the need for a macroeconomic policy and its implementation






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






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






20. The labor sector highlights the rate of ____ .






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






22. The monetary sector focuses on the ________ rate.






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






24. Government policies intended to increase spending and output.






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






26. The lowest point of the recession






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






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






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






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






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






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






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






34. 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.






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






36. Caused by changes in the overall economy.






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






38. 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.






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






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






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






43. Combines pure market and command. Example: Japan






44. 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.






45. 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.






46. 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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47. Goods and services sector - Labor sector - monetary sector - international sector.






48. 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






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






50. 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.