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