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Test your basic knowledge |
CLEP Macroeconomics Basics
Start Test
Study First
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 science of efficiency; concerned with allocating these scarce resources so as to achieve maximum fulfillment of our material wants
economics
decrease in supply
allocative efficiency
surplus
2. Indicates increasing opportunity costs
full employment
Law of Supply
scarcity
concave shape of PPC
3. Amount of a good or service that consumers plan to buy in a given period of time and in given conditions
substitute effect
full production
demand
command economy
4. When something other than price changes a demand - the demand curve shifts left or right
change in demand
substitute effect
surplus
economic efficiency
5. All resources available being used (land - capital goods - and laborers)
capital goods
full employment
four assumptions of PPC
inside PPC
6. Results when the price is set below the equilibrium price
capitalism
shortage
full production
mixed economy
7. Achieved when society is producing at full employment and full production
economic efficiency
allocative efficiency
outside PPC
surplus
8. A communist economy; the government determines what is produced and in what quantities and at what price
allocative efficiency
command economy
equilibrium price
concave shape of PPC
9. Items that satisfy wants indirectly by facilitating the production of consumer goods; economic growth is dictated by a society's production of capital goods
inside PPC
capital goods
attainable and efficient
consumer goods
10. The amount of products that must be forgone in order to obtain an additional unit of any given product
scarcity
demand
increase in demand
opportunity cost
11. The least costly method of production is being used to produce the desired goods and services
productive efficiency
laissez-faire
capital goods
scarcity
12. A point of production that is inefficient
demand curve
inside PPC
four assumptions of PPC
concave shape of PPC
13. Slopes downward
demand curve
attainable and efficient
decrease in supply
shortage
14. Curve shifts to left
Law of Demand
decrease in supply
increase in supply
Law of Supply
15. Curve shifts to right
downward slope
increase in supply
substitute effect
increase in demand
16. The higher the price - the lower the quantity demanded. the lower the price - the higher the quantity demanded.
mixed economy
outside PPC
full production
Law of Demand
17. The amount of good or service that a producer plans to sell in a certain time frame
attainable and efficient
production possibilities curve
supply
decrease in supply
18. Indicates economic growth (society found more resources or developed better technology)
shift to right of PPC
demand
factors influencing demand
downward slope
19. Meaning - 'let it be -' this is a term that indicates little government involvement in the economy
laissez-faire
full production
factors influencing demand
production possibilities curve
20. Curve shifts to right
change in supply
demand
increase in demand
change in demand
21. At a lower price - people will buy more of a particular good because they do not have to sacrifice other goods at its expense
income effect
mixed economy
outside PPC
command economy
22. (1) the price of the good; (2) the prices of related goods; (3) expected future prices; (4) income; (5) population; and (6) preferences
command economy
factors influencing demand
surplus
capital goods
23. Desires are unlimited - resources are limited.
decrease in supply
change in supply
increase in supply
scarcity
24. As price rises - the corresponding quantity supplied also rises and likewise when the price falls - the quantity supplied decreases
attainable and efficient
supply
Law of Supply
increase in demand
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.
four assumptions of PPC
increase in demand
allocative efficiency
demand curve
26. A system of private ownership of resources using free markets and prices to determine economic activity; little government involvement
capitalism
scarcity
shortage
laissez-faire
27. Results when the price is set above equilibrium price
substitute effect
factors influencing demand
allocative efficiency
surplus
28. If a similar good is priced more cheaply - people will buy the cheaper substitute instead of the good itself (Coke - Pepsi; bananas - strawberries)
substitute effect
capital goods
Law of Supply
command economy
29. A graphical representation of opportunity costs
increase in demand
laissez-faire
scarcity
downward slope
30. Curve shifts to left
Law of Supply
decrease in demand
economic efficiency
four assumptions of PPC
31. A graphical representation of the boundary between what is attainable and what is not
allocative efficiency
factors influencing demand
factors determining supply
production possibilities curve
32. 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.
shift to right of PPC
mixed economy
factors determining supply
income effect
33. The point at which quantity demanded and quantity supplied meet
shortage
downward slope
equilibrium price
outside PPC
34. All resources are devoted to society's most desired goods and services
full employment
traditional economy
factors determining supply
allocative efficiency
35. A point of production that is unattainable
economic efficiency
demand
outside PPC
surplus
36. When something other than price changes in supply - the supply curve shifts left or right
change in supply
capitalism
decrease in demand
attainable and efficient
37. All available resources are making the most valuable contributions to output
full production
decrease in supply
four assumptions of PPC
consumer goods
38. Goods that satisfy needs or wants immediately and get used up
consumer goods
surplus
full employment
decrease in demand
39. Most economies are not completely laissez-faire and not completely command - but some mixture
mixed economy
Law of Supply
economic efficiency
decrease in supply
40. Points on the PPC
attainable and efficient
four assumptions of PPC
opportunity cost
Law of Demand
41. Custom and culture define how resources are produced and exchanged and how income is distributed - and technology is viewed as invasive
demand curve
economics
consumer goods
traditional economy