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






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






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






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






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






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






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






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






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






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






11. The beginning of a recession






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






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






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






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






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






17. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






19. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.






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






21. 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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22. Organizations that act as moderators between employers and employees






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






24. 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.






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






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






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






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






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






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






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






32. The real cost of changing a listed price.






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






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






35. Money multiplied by velocity equals nominal GDP.






36. 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.






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






38. Total supply of goods and services in an economy






39. Extreme economic growth






40. The relationship between disposable income and spending on consumable goods and services






41. The annual percentage rate of change in price level reflected by price indexes






42. 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






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






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






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






47. Caused by changes in the overall economy.






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






49. Government policies intended to increase spending and output.






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