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CLEP Macroeconomics Basics

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. Results when the price is set below the equilibrium price






2. If a similar good is priced more cheaply - people will buy the cheaper substitute instead of the good itself (Coke - Pepsi; bananas - strawberries)






3. Indicates increasing opportunity costs






4. A system of private ownership of resources using free markets and prices to determine economic activity; little government involvement






5. All available resources are making the most valuable contributions to output






6. Amount of a good or service that consumers plan to buy in a given period of time and in given conditions






7. 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.






8. A graphical representation of opportunity costs






9. The amount of products that must be forgone in order to obtain an additional unit of any given product






10. A graphical representation of the boundary between what is attainable and what is not






11. The higher the price - the lower the quantity demanded. the lower the price - the higher the quantity demanded.






12. Achieved when society is producing at full employment and full production






13. Curve shifts to right






14. A point of production that is inefficient






15. Desires are unlimited - resources are limited.






16. When something other than price changes in supply - the supply curve shifts left or right






17. Indicates economic growth (society found more resources or developed better technology)






18. A point of production that is unattainable






19. Results when the price is set above equilibrium price






20. At a lower price - people will buy more of a particular good because they do not have to sacrifice other goods at its expense






21. Slopes downward






22. When something other than price changes a demand - the demand curve shifts left or right






23. Meaning - 'let it be -' this is a term that indicates little government involvement in the economy






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






25. Curve shifts to right






26. The amount of good or service that a producer plans to sell in a certain time frame






27. (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.






28. Points on the PPC






29. Curve shifts to left






30. A communist economy; the government determines what is produced and in what quantities and at what price






31. The least costly method of production is being used to produce the desired goods and services






32. As price rises - the corresponding quantity supplied also rises and likewise when the price falls - the quantity supplied decreases






33. The science of efficiency; concerned with allocating these scarce resources so as to achieve maximum fulfillment of our material wants






34. All resources are devoted to society's most desired goods and services






35. Most economies are not completely laissez-faire and not completely command - but some mixture






36. The point at which quantity demanded and quantity supplied meet






37. All resources available being used (land - capital goods - and laborers)






38. Custom and culture define how resources are produced and exchanged and how income is distributed - and technology is viewed as invasive






39. (1) the price of the good; (2) the prices of related goods; (3) expected future prices; (4) income; (5) population; and (6) preferences






40. Curve shifts to left






41. Goods that satisfy needs or wants immediately and get used up