CLEP Principles of Macroeconomics Version 1
Practice exam for College Level Examination Program CLEP under College Placement Exams (College Exams). 5 sample questions.
Sample Questions
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Question 1
Which model shows households supplying factors of production and firms supplying goods & services?
Correct Answer: A
Rationale: The circular-flow diagram maps the real and money flows between households and firms.
Rationale: The circular-flow diagram maps the real and money flows between households and firms.
Question 2
Capitalist societies chiefly rely on which mechanism to allocate resources?
Correct Answer: D
Rationale: Prices and competition in markets direct resource use in capitalist economies.
Rationale: Prices and competition in markets direct resource use in capitalist economies.
Question 3
Italy has comparative advantage in wine, Greece in olives. We may conclude:
Correct Answer: D
Rationale: Different opportunity-cost slopes underlie comparative advantage and mutually beneficial trade.
Rationale: Different opportunity-cost slopes underlie comparative advantage and mutually beneficial trade.
Question 4
Which unemployment type results from technological change?
Correct Answer: D
Rationale: New tech displaces workersâ€â€classic structural unemployment.
Rationale: New tech displaces workersâ€â€classic structural unemployment.
Question 5
Who is cyclically unemployed?
Correct Answer: D
Rationale: Cyclical unemployment follows the business cycle; housing slump = recession-driven.
Rationale: Cyclical unemployment follows the business cycle; housing slump = recession-driven.