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