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