Practice Quiz

CLEP Economics Exam Prep - Question List

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11. Two countries are currently trading with each other. The countries agree to remove all trade restrictions on products traded between them. Which of the following is most likely to decrease?
  1. The variety of goods available
  2. The prices of imported goods
  3. The quality of goods available
  4. The amount of imported goods
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12. The owners of Grass Cutters, a lawn-mowing service, decide to purchase four additional mowers because demand for their services is increasing. The owners make this decision projecting that the output, total costs, and total revenues of their business will change in which of the following ways?Output Total Costs Total Revenues
  1. Increase Increase Increase
  2. Increase Increase Decrease
  3. Increase Decrease Increase
  4. Decrease Decrease Increase
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13. An entrepreneur is considering spending money on research to develop a more efficient way to produce a product. What is the most important factor in the decision on whether or not to spend this money?
  1. The size of the plant needed to produce the product
  2. The number of competitors producing a similar product
  3. The increase in profit expected from producing the product
  4. The degree to which consumers consider the product a necessity
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14. Which of the following best describes the amount of a product that people will continue to buy at a given price?
  1. People will buy as many units as they can afford.
  2. People will buy another unit unless its benefit is zero.
  3. People will buy another unit as long as its benefit is positive.
  4. People will buy another unit as long as its benefit is greater than its cost.
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15. If consumers from Country X greatly increase their purchases of products from Country Y, the value of these two countries' currencies relative to one another will change in which of the following ways?
  1. The values of both countries' currencies will increase.
  2. The value of Country X's currency will increase; the value of Country Y's currency will decrease.
  3. The value of Country X's currency will decrease; the value of Country Y's currency will increase.
  4. The values of both countries' currencies will decrease.
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