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