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






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






3. 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.






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






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






6. Organizations that act as moderators between employers and employees






7. (n) something of value; a resource; an advantage






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






9. 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.






10. The labor sector highlights the rate of ____ .






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






12. 1 percent more unemployment results in 2 percent less output.


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






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






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






16. The international sector emphasizes the ________ rate.






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






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






19. The slow change in inflation from year to year in industrialized nations






20. 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.






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






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






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






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






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






26. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






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






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






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






30. A measure of overall price levels at a specific point in the price index.






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






32. When prices fall consistently over time - leading to negative inflation.






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






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






35. Total supply of goods and services in an economy






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






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






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






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






40. 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.






41. When an economic unit makes more than it spends






42. Extreme economic growth






43. The government office that is responsible for projecting federal surpluses and deficits






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






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






46. When the rate of inflation is extremely high.






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






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






49. The beginning of a recession






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