CLEP Economics

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Economics is very essential in balancing your needs with your income, especially during inflation or deflation, Econonmics is a very broad course, so we try to give at least a question for a certain concept of economics. The basic understanding of economics graphs is crucial for the test you want to take, test your knowledge on CLEP economics by taking this quiz.

Questions and Answers

1.

A budget surplus is when a country:
- A.
  
  Spends more than it earns
- B.
  
  Earns more than it spends
- C.
  
  Expenditure is equal to income
- D.
  
  None of the above
Correct Answer
B. Earns more than it spends
2.

The term used when resources are limited to satisfy need is...
- A.
  
  Demand
- B.
  
  Supply
- C.
  
  Scarcity
- D.
  
  Expenditure
Correct Answer
C. Scarcity
3.

A legal tender is...
- A.
  
  Cheque
- B.
  
  Any recognized means of exchange
- C.
  
  Coins
- D.
  
  Paper money
Correct Answer
B. Any recognized means of exchange
4.

The reward for labour is...
- A.
  
  Land
- B.
  
  Wages
- C.
  
  Profit
- D.
  
  Interest
Correct Answer
B. Wages
5.

A normal good has an income elasticity which is...
- A.
  
  Fixed
- B.
  
  Negative
- C.
  
  Positive
- D.
  
  0
Correct Answer
B. Negative
6.

Where are stocks and shares bought?
- A.
  
  Money market
- B.
  
  Commodity market
- C.
  
  Open market
- D.
  
  Stock exchange
Correct Answer
D. Stock exchange
7.

A capitalist economy has businesses which are:
- A.
  
  Government owned only
- B.
  
  Private owned only
- C.
  
  Owned by both
- D.
  
  None of the above
Correct Answer
B. Private owned only
8.

A economy with both private and public business is...
- A.
  
  Capitalist
- B.
  
  Socialist
- C.
  
  Mix economy
- D.
  
  None of the above
Correct Answer
C. Mix economy
9.

The main goal of a capitalist business is to...
- A.
  
  Help other
- B.
  
  Alleviate poverty
- C.
  
  Maximize profit
- D.
  
  Others
Correct Answer
A. Help other
10.

What is the study of scare and end means?
- A.
  
  Business studies
- B.
  
  Economics
- C.
  
  Geography
- D.
  
  Marketing
Correct Answer
B. Economics