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






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






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






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






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






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






7. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






8. When inflation suddenly deviates from its normal course.






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






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






11. 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.






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






13. 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.






14. The real cost of changing a listed price.






15. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






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






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






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






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






20. That efficiency leads to economic prosperity for all.






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






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






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






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






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






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






27. Payments that the government makes to unemployed workers.






28. 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.






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






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






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






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






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






34. 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






35. The lowest point of the recession






36. Extreme economic growth






37. Organizations that act as moderators between employers and employees






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






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






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






41. 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.






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






44. 1 percent more unemployment results in 2 percent less output.

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






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






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






48. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






50. There is an ___________ ___ when aggregate output is above potential output