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