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CLEP Macroeconomics Basics

Subjects : clep, economics
  • Answer 41 questions in 15 minutes.
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  • Match each statement with the correct term.
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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 something other than price changes in supply - the supply curve shifts left or right

2. Curve shifts to left

3. A point of production that is inefficient

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

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

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

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

8. Slopes downward

9. Points on the PPC

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

11. Results when the price is set above equilibrium price

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

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

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

15. Curve shifts to left

16. A graphical representation of opportunity costs

17. Desires are unlimited - resources are limited.

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

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

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

21. 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.

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

23. Indicates increasing opportunity costs

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

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

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

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

28. Curve shifts to right

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

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

31. Curve shifts to right

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

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

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

35. A point of production that is unattainable

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

37. (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.

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

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

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

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