Practice Quiz

CLEP Principles of Macroeconomics Exam Prep - Question List

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21. Which of the following refers to the graphical method of illustrating the complicated economic relationship between consumption and spending?
  1. The scarcity and demand curve
  2. The supply and demand paradigm
  3. The market equilibrium balance
  4. The production possibilities curve
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22. A small Latin American country has been running a trade deficit for the past few years. A trade deficit occurs when:
  1. A government exports more than it imports
  2. A government imports more than it exports
  3. A government imports raw goods only
  4. A government exports manufactured goods only
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23. In the circular flow of money through an economy, the following is considered a leakage:
  1. Consumer expenditure
  2. Bank interest
  3. Consumer saving
  4. Wages paid to workers
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24. The medium run aggregate supply (MRAS) is affected by labor, capital availability, technological capability, and wage rate.
  1. True
  2. False
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25. With the introduction of government-funded health programs for the elderly and the poor, private health insurers have lost a substantial portion of their insured clients to these programs. The introduction of government-sponsored spending that curbs private investment is referred to as:
  1. Squeezing-out
  2. Crowding-in
  3. Crowding-out
  4. Squeezing-in
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