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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. Results when the price is set above equilibrium price






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






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






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






5. A point of production that is inefficient






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






7. Curve shifts to right






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






9. Curve shifts to left






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






11. Desires are unlimited - resources are limited.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






28. Indicates increasing opportunity costs






29. Curve shifts to left






30. 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.






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






32. A point of production that is unattainable






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






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






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






36. Points on the PPC






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






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






39. Slopes downward






40. A graphical representation of opportunity costs






41. Curve shifts to right