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






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






3. Indicates increasing opportunity costs






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






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






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






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. Curve shifts to left






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






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






11. Points on the PPC






12. Curve shifts to right






13. A point of production that is inefficient






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






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






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






17. A graphical representation of opportunity costs






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






19. A point of production that is unattainable






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






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






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






23. Results when the price is set above equilibrium price






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






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






26. Desires are unlimited - resources are limited.






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






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






29. Slopes downward






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






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






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






33. 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.






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






35. (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.






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






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






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






39. Curve shifts to left






40. Curve shifts to right






41. The point at which quantity demanded and quantity supplied meet