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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 output per employed worker






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






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






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






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






6. 1 percent more unemployment results in 2 percent less output.

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7. When inflation suddenly deviates from its normal course.






8. Organizations that act as moderators between employers and employees






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






10. Caused by changes in the overall economy.






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






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






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






14. The beginning of a recession






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






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






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






18. 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.






19. 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.






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






21. The international sector emphasizes the ________ rate.






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






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






24. Money multiplied by velocity equals nominal GDP.






25. 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.






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






27. 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).






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






29. The monetary sector focuses on the ________ rate.






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






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






32. Total supply of goods and services in an economy






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






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






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






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






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






38. 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.






39. Real Estate - Equipment - and Cash (physical assets)






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






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






42. Payments that the government makes to unemployed workers.






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






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






45. When an economic unit makes more than it spends






46. When the rate of inflation is extremely high.






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






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






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






50. 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.