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






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






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






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






6. 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.






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






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






9. 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.






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






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






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






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






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






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






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






17. Natural Rate of Unemployment - a rate that will always exist






18. Extreme economic growth






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






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






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






22. 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.






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






24. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






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






26. 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.






27. Used in the production of final goods - but instead of being consumed - are available for reuse.






28. Unicorporated entity that has shared ownership.






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






30. The lowest point of the recession






31. The beginning of a recession






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






33. 1 percent more unemployment results in 2 percent less output.

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

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35. The level of output where output equals planned aggregate expenditure






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






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






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






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






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






41. When the rate of inflation is extremely high.






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






43. The international sector emphasizes the ________ rate.






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






45. That efficiency leads to economic prosperity for all.






46. The output per employed worker






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






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






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






50. Payments that the government makes to unemployed workers.