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