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






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






3. Government policies intended to increase spending and output.






4. The total planned spending on final goods and services.






5. Organizations that act as moderators between employers and employees






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






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






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






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






10. When an economic unit makes more than it spends






11. The labor sector highlights the rate of ____ .






12. The portion of planned aggregate expenditure that is not based on output






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

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14. Unicorporated entity that has shared ownership.






15. Caused by changes in the overall economy.






16. 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.






17. 1 percent more unemployment results in 2 percent less output.

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






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






20. The beginning of a recession






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






22. The international sector emphasizes the ________ rate.






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






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






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






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






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






28. 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.






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






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






31. The lowest point of the recession






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






33. When inflation suddenly deviates from its normal course.






34. 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.






35. A policy that affects potential output






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






37. Payments that the government makes to unemployed workers.






38. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






39. Government policies aimed at stabilizing the economy by eliminating output gaps






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






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






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






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






44. 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.






45. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






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






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






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






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