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






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






3. When an economic unit makes more than it spends






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






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






6. The lowest point of the recession






7. 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






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






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






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






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






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






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

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14. The output per employed worker






15. Total supply of goods and services in an economy






16. The beginning of a recession






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






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






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






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






21. 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.






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






23. 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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24. The labor sector highlights the rate of ____ .






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






26. 1 percent more unemployment results in 2 percent less output.

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27. Government policies intended to increase spending and output.






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






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






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






32. Combines pure market and command. Example: Japan






33. 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.






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






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






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






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






38. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






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






40. Extreme economic growth






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






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






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






44. Caused by changes in the overall economy.






45. The ease with which an asset can be converted to currency.






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






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






48. Unicorporated entity that has shared ownership.






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






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