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






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






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

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






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 goods and services sector focuses largely on the level of ______ .






7. Unicorporated entity that has shared ownership.






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






9. 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






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






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






12. That efficiency leads to economic prosperity for all.






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






14. When the rate of inflation is extremely high.






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






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






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






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






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






20. 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.






21. 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.






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






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






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






25. The real cost of changing a listed price.






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






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






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






29. The labor sector highlights the rate of ____ .






30. 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






31. The international sector emphasizes the ________ rate.






32. Natural Rate of Unemployment - a rate that will always exist






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






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






35. The beginning of a recession






36. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






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






39. When inflation suddenly deviates from its normal course.






40. The lowest point of the recession






41. A policy that affects potential output






42. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






43. When an economic unit makes more than it spends






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






45. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






47. 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.






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






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






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