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