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CLEP Macroeconomics Basics

Subjects : clep, economics
Instructions:
  • Answer 41 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 point at which quantity demanded and quantity supplied meet






2. The least costly method of production is being used to produce the desired goods and services






3. When something other than price changes in supply - the supply curve shifts left or right






4. Goods that satisfy needs or wants immediately and get used up






5. When something other than price changes a demand - the demand curve shifts left or right






6. A point of production that is inefficient






7. If a similar good is priced more cheaply - people will buy the cheaper substitute instead of the good itself (Coke - Pepsi; bananas - strawberries)






8. A point of production that is unattainable






9. Indicates increasing opportunity costs






10. A communist economy; the government determines what is produced and in what quantities and at what price






11. Amount of a good or service that consumers plan to buy in a given period of time and in given conditions






12. (1) the price of the good; (2) the prices of related goods; (3) expected future prices; (4) income; (5) population; and (6) preferences






13. Meaning - 'let it be -' this is a term that indicates little government involvement in the economy






14. Curve shifts to left






15. Items that satisfy wants indirectly by facilitating the production of consumer goods; economic growth is dictated by a society's production of capital goods






16. Desires are unlimited - resources are limited.






17. Curve shifts to left






18. A system of private ownership of resources using free markets and prices to determine economic activity; little government involvement






19. All resources are devoted to society's most desired goods and services






20. All resources available being used (land - capital goods - and laborers)






21. Most economies are not completely laissez-faire and not completely command - but some mixture






22. The amount of products that must be forgone in order to obtain an additional unit of any given product






23. Results when the price is set below the equilibrium price






24. Points on the PPC






25. (1) the economy is fully efficient meaning that it is operating at full production and full employment; (2) resources are fixed; (3) technology is fixed; and (4) there are only two products.






26. As price rises - the corresponding quantity supplied also rises and likewise when the price falls - the quantity supplied decreases






27. Slopes downward






28. 1) the technique of production; (2) prices of resources needed to produce the good or service; (3) taxes and subsidies; (4) prices of other goods; (5) price expectations; and (6) the number of other sellers in the market.






29. The higher the price - the lower the quantity demanded. the lower the price - the higher the quantity demanded.






30. Curve shifts to right






31. Indicates economic growth (society found more resources or developed better technology)






32. Custom and culture define how resources are produced and exchanged and how income is distributed - and technology is viewed as invasive






33. All available resources are making the most valuable contributions to output






34. A graphical representation of the boundary between what is attainable and what is not






35. A graphical representation of opportunity costs






36. At a lower price - people will buy more of a particular good because they do not have to sacrifice other goods at its expense






37. The science of efficiency; concerned with allocating these scarce resources so as to achieve maximum fulfillment of our material wants






38. Results when the price is set above equilibrium price






39. The amount of good or service that a producer plans to sell in a certain time frame






40. Achieved when society is producing at full employment and full production






41. Curve shifts to right