CLEP: Principles Of Macroeconomics! Trivia Quiz

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CLEP: Principles Of Macroeconomics! Trivia Quiz - Quiz

The CLEP Principles of Macroeconomics test examines your basic knowledge of macroeconomics. Macroeconomics deals with a larger scale of the economy such as a country's economy. The questions are technical for the analysis of an economy. Take the test to ascertain your success.


Questions and Answers
  • 1. 

    Macroeconomics deals with

    • A.

      A smaller scale of the economy.

    • B.

      JA larger scale of the economy

    • C.

      The private business

    • D.

      None of the above

    Correct Answer
    B. JA larger scale of the economy
    Explanation
    Macroeconomics is the branch of economics that focuses on the study of the entire economy as a whole. It analyzes the behavior and performance of the economy on a larger scale, including factors such as national income, unemployment rates, inflation, and economic growth. This is in contrast to microeconomics, which examines the behavior of individual households, firms, and markets. Therefore, the correct answer is "A larger scale of the economy".

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  • 2. 

    Frederick has a job at a supermarket as a janitor, yet he has a master's degree in accounting shows...

    • A.

      Unemployment

    • B.

      Underemployment

    • C.

      Exploiting employment

    • D.

      None of the above

    Correct Answer
    B. Underemployment
    Explanation
    The correct answer is underemployment. This is because Frederick has a master's degree in accounting but is only working as a janitor at a supermarket. This indicates that he is not fully utilizing his skills and qualifications in his current job, which is a form of underemployment.

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  • 3. 

    Budget deficit means...

    • A.

      The income of the country is more than the expenditure.

    • B.

      The expenditure of a country is more than the income

    • C.

      A and B

    • D.

      All of the above

    Correct Answer
    B. The expenditure of a country is more than the income
    Explanation
    The correct answer is "The expenditure of a country is more than the income." This means that the country is spending more money than it is earning, resulting in a budget deficit. This can lead to borrowing or increasing the national debt to cover the shortfall in funds.

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  • 4. 

    Inflation is caused by one of the following.

    • A.

      Government policy

    • B.

      Increase in supply

    • C.

      Excess money in circulation

    • D.

      A and B

    Correct Answer
    C. Excess money in circulation
    Explanation
    Excess money in circulation can lead to inflation because when there is more money available in the economy, people have more purchasing power. This increased demand for goods and services can drive up prices. Additionally, when there is excess money in circulation, it can lead to an increase in borrowing and lending, which can further fuel inflationary pressures. Therefore, the presence of excess money in circulation is a significant factor contributing to inflation.

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  • 5. 

    Deflation means:

    • A.

      Persistent rise in price of goods and services.

    • B.

      Persistent fall in prices of goods and services

    • C.

      The downturn of the economy

    • D.

      None of the above

    Correct Answer
    B. Persistent fall in prices of goods and services
    Explanation
    Deflation refers to a persistent fall in prices of goods and services. This means that over a period of time, the overall cost of goods and services decreases. Deflation can occur due to various factors such as reduced demand, increased productivity, or a decrease in the money supply. It is the opposite of inflation, where there is a persistent rise in prices.

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  • 6. 

    Overpopulation means

    • A.

      The burst of population

    • B.

      The situation with too many people

    • C.

      Insufficience of resources to cater for people.

    • D.

      All of the above

    Correct Answer
    C. Insufficience of resources to cater for people.
    Explanation
    Overpopulation refers to a situation where there are too many people in a given area or the world, exceeding the available resources to adequately support them. This means that there is an insufficiency of resources to cater for the growing population, such as food, water, housing, and healthcare. It implies that the population size is exceeding the carrying capacity of the environment, leading to various social, economic, and environmental challenges.

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  • 7. 

    Father of economics is...

    • A.

      Adams Smith

    • B.

      Karl Marx

    • C.

      Adolf Hitler

    • D.

      All of the above

    Correct Answer
    A. Adams Smith
    Explanation
    Adam Smith is widely regarded as the father of economics. He was a Scottish philosopher and economist who wrote the influential book "The Wealth of Nations" in 1776. In this book, Smith laid the foundation for modern economics by discussing concepts such as the division of labor, free markets, and the invisible hand. His ideas greatly influenced the development of capitalism and the understanding of economic systems. Karl Marx, on the other hand, is known for his theories on communism and social class struggle, while Adolf Hitler was a political leader and dictator, not an economist. Therefore, the correct answer is Adam Smith.

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  • 8. 

    All but one is used by central banks use to control the supply of money.

    • A.

      Moral suasions

    • B.

      Open market operation

    • C.

      Directives

    • D.

      Bank charges

    Correct Answer
    D. Bank charges
    Explanation
    Bank charges are not used by central banks to control the supply of money. Central banks primarily use tools such as moral suasion, open market operations, and directives to influence the money supply and regulate the economy. Bank charges, on the other hand, are fees imposed by banks on their customers for various services and transactions. They are not directly related to the control of money supply and are determined by individual banks based on their business strategies and cost structures.

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  • 9. 

    When a government has many issues which need financial support, picking the pressing needs show.

    • A.

      Scale of preference

    • B.

      Opportunity forgone

    • C.

      Alternatives

    • D.

      All of the above

    Correct Answer
    A. Scale of preference
    Explanation
    The concept of scale of preference refers to the ordering of needs or wants based on their importance or urgency. When a government has limited financial resources and many issues that require funding, it needs to prioritize and allocate resources to address the most pressing needs first. This is done by establishing a scale of preference, which helps in determining the order in which needs should be addressed. Therefore, the concept of scale of preference is relevant in the given context.

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  • 10. 

    Why do we study economics?

    • A.

      To meet our needs with scarce resources

    • B.

      To buy and sell

    • C.

      To create utility

    • D.

      All of the above

    Correct Answer
    A. To meet our needs with scarce resources
    Explanation
    We study economics to understand how to meet our needs with limited resources. Economics helps us analyze and make decisions about how to allocate resources efficiently to satisfy our unlimited wants and needs. By studying economics, we can learn about the principles of supply and demand, production, distribution, and consumption, which are essential for making informed choices in a world of scarcity.

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