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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. Legal entity that has received a charter from a state or federal government.






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






3. The beginning of a recession






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






5. 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.






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






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






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






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






10. 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.






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






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






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






14. Describes how the economy directly effects the actions policymakers take.






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






16. Organizations that act as moderators between employers and employees






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






18. 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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19. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






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






21. A result of there only being one buyer of a resource input - good - or service.






22. The monetary sector focuses on the ________ rate.






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






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






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






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






27. 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






28. Government policies intended to increase spending and output.






29. Combines pure market and command. Example: Japan






30. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






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






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






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






34. Total supply of goods and services in an economy






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






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






37. When an economic unit makes more than it spends






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






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






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






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






43. Money multiplied by velocity equals nominal GDP.






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






45. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






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






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






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






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






50. Unicorporated entity that has shared ownership.