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