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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 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






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






3. 1 percent more unemployment results in 2 percent less output.

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






5. 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.






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






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






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






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






10. When an economic unit makes more than it spends






11. 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.






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






13. The beginning of a recession






14. Government policies intended to increase spending and output.






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






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






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






18. The output per employed worker






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






20. 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.






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






22. That efficiency leads to economic prosperity for all.






23. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






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






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






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






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






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






31. 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.






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






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






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






35. The international sector emphasizes the ________ rate.






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






37. A quantity that is measured in real terms - the actual quantity of a good or service






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






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






40. 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.






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






42. When inflation suddenly deviates from its normal course.






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






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






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






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






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






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






49. Money multiplied by velocity equals nominal GDP.






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






Can you answer 50 questions in 15 minutes?



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