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