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






2. 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).






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






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






5. 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.






6. 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.






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






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

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






10. The international sector emphasizes the ________ rate.






11. When people's expectations of future inflation do not change even though inflation rates change.






12. Total supply of goods and services in an economy






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






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






15. The time between the need for a macroeconomic policy and its implementation






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






17. 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.






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






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






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






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






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






23. Government policies intended to increase spending and output.






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






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






26. The part of economics study that looks at the operation of a nation's economy as a whole






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






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






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






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






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






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






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






34. The real cost of changing a listed price.






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






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






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






38. 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.






39. Combines pure market and command. Example: Japan






40. When inflation suddenly deviates from its normal course.






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






42. A policy that affects potential output






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






45. 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.






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






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






48. That efficiency leads to economic prosperity for all.






49. When an economic unit makes more than it spends






50. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.