SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
AP Microeconomics
Start Test
Study First
Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Holding all else equal - when the price of a good rises - suppliers increase their quantity supplied for that good
Perfect competition
Law of Increasing Costs
Law of Supply
Monopoly
2. Demand for a resource like labor is derived from the demand for the goods produced by the resource
Monopoly
Private goods
Derived Demand
Opportunity Cost
3. Entry of new firms shifts the cost curves for all firms upward
Collusive oligopoly
Normal Profit
Increasing Cost Industry
Luxury
4. Entry of new firms shifts the cost curves for all firms downward
Market power
Total Product of Labor (TPL)
Decreasing Cost industry
Scarcity
5. The sum of consumer surplus and producer surplus
Law of Diminishing Marginal Utility
Opportunity Cost
Determinants of Demand
Total Welfare
6. Entry (or exit) of firms does not shift the cost curves of firms in the industry
Collusive oligopoly
Income Effect
Economies of Scale
Constant cost industry
7. The number of units of any other good Y that must be sacrificed to acquire good X. Only relative prices matter
Monopsonist
Average Variable Cost (AVC)
Price inelastic demand
Relative Prices
8. Another way of saying that firms are earning zero economic profits or a fair rate of return on invested resources
Normal Profit
Monopolistic competition long-run equilibrium
Shutdown Point
Marginal Product of Labor (MPL)
9. The least competitive market structure - characterized by a single producer - with no close substitutes - barriers to entry - and price making power
Marginal Productivity Theory
Shutdown Point
Monopoly
Monopolistic competition
10. Goods that are both rival and excludable. Only one person can consume the good at a time and consumers who do not pay for the good are excluded from consumption
Marginal Revenue Product (MRP)
Allocative Efficiency
Marginal Benefit (MB)
Private goods
11. AVC = TVC/Q
Market power
Short run
Free-Rider Problem
Average Variable Cost (AVC)
12. Occurs when LRAC is constant over a variety of plant sizes
Absolute Advantage
Excise Tax
Constant Returns to Scale
Natural Monopoly
13. The difference between your willingness to pay and the price you actually pay. It is the area below the demand curve and above the price
Diseconomies of Scale
Allocative Efficiency
Market power
Consumer surplus
14. Production of maximum output for a given level of technology and resources. All points on the PPF are productively efficient
Oligopoly
Productive Efficiency
Law of Increasing Costs
Total Welfare
15. The additional benefit received from the consumption of the next unit of a good or service
Marginal Benefit (MB)
Public goods
Determinants of Labor Demand
Constant Returns to Scale
16. The study of how people - firms - and societies use their scarce productive resources to best satisfy their unlimited material wants.
Law of Increasing Costs
Economics
Normal Goods
Constant cost industry
17. Labor demand for the firm is MRPL curve. The labor demanded for the entire market DL = ?MRPL of all firms
Total Revenue
Perfectly inelastic
Demand for Labor
Average Product of Labor (APL)
18. In the case of a public good - some members of the community know that they can consume the public good while others provide for it. This results in a lack of private funding and forces the government to provide it
Free-Rider Problem
Constant Returns to Scale
Marginal Revenue Product (MRP)
Variable inputs
19. Consumer income - prices of substitute and complementary goods - consumer tastes and preferences - consumer speculation - and number of buyers in the market all influence demand
Inferior Goods
Monopolistic competition long-run equilibrium
Determinants of Demand
Price discrimination
20. A good for which higher income decreases demand
Economic Growth
Natural Monopoly
Inferior Goods
Economic Profit
21. Ed = (%dQd)/(%dP). Ignore negative sign
Perfectly inelastic
Total Fixed Costs (TFC)
Price elasticity
Non-collusive oligopoly
22. Excess demand; a shortage exists at a market price when the quantity demanded exceeds the quantity supplied
Productive Efficiency
Determinants of Supply
Average Total Cost (ATC)
Shortage
23. A period of time too short to change the size of the plant - but many other - more variable resources can be changed to meet demand
Law of Diminishing Marginal Utility
Short run
Marginal Analysis
Dead Weight Loss
24. The practice of selling essentially the same good to different groups of consumers at different prices
Opportunity Cost
Least-Cost Rule
Economies of Scale
Price discrimination
25. Two goods are consumer complements if they provide more utility when consumed together than when consumed separately
Complementary Goods
Total Revenue Test
Substitution Effect
Average Variable Cost (AVC)
26. The ability to set the price above the perfectly competitive level
Scarcity
Substitution Effect
Inferior Goods
Market power
27. A period of time long enough to alter the plant size. New firms can enter the industry and existing firms can liquidate and exit
Economic Profit
Absolute prices
Profit Maximizing Resource Employment
Long Run
28. Total product divided by labor employed. APL = TPL/L
Increasing Cost Industry
Average Product of Labor (APL)
Explicit costs
Private goods
29. Exists when the production of a good imposes disutility upon third parties not directly involved in the consumption or production of the good
Market Equilibrium
Marginal Resource Cost (MRC)
Negative externality
Total Welfare
30. The output where AVC is minimized. If the price falls below this point - the firm chooses to shut down or produce zero units in the short run
Implicit costs
Monopsonist
Shutdown Point
Law of Increasing Costs
31. Costs that do not vary with changes in short-run output. They must be paid even when output is zero.
Dead Weight Loss
Total Fixed Costs (TFC)
Diseconomies of Scale
Economic Growth
32. Characterized by many small price-taking firms producing a standardized product in an industry in which there are no barriers to entry or exit
Economic Profit
Perfect competition
Shortage
Average Fixed Cost (AFC)
33. The change in quantity demanded that results from a change in the consumer's purchasing power (or real income)
Public goods
Market Equilibrium
Income Effect
Market Economy (Capitalism)
34. ATC = TC/Q = AFC + AVC
Variable inputs
Determinants of elasticity
Four-firm concentration ratio
Average Total Cost (ATC)
35. The rational decision maker chooses an action if MB = MC
Explicit costs
Marginal Analysis
Excess Capacity
Negative externality
36. Ed = 1
Income Effect
Unit elastic demand
Perfectly elastic
Law of Diminishing Marginal Utility
37. Goods that are both nonrival and nonexcludable. One person's consumption does not prevent another from also consuming that good and if it is provided to some - it is necessarily provided to all - even if they do not pay for that good
Cartel
Public goods
Price Ceiling
Excess Capacity
38. Ed = 8 - infinite change in demand to price change
Spillover benefits
Absolute prices
Collusive oligopoly
Perfectly elastic
39. Substitutes - cost as percentage of income - and time to adjust to price changes all influence price elasticity
Price discrimination
Perfectly elastic
Shortage
Determinants of elasticity
40. The difference between the price received and the marginal cost of producing the good. It is the area above the supply curve and under the price
Marginal Benefit (MB)
Decreasing Cost industry
Profit Maximizing Resource Employment
Producer surplus
41. Exists if a producer can produce a good at lower opportunity cost than all other producers
Law of Supply
Incidence of Tax
Comparative Advantage
Total Fixed Costs (TFC)
42. A group of firms that agree not to compete with each other on the basis of price - production - or other competitive dimensions. Cartel members operate as a monopolist to maximize their joint profits
Constant Returns to Scale
Spillover benefits
Profit Maximizing Resource Employment
Cartel
43. For one good - constrained by prices and income - a consumer stops consuming a good when the price paid for the next unit is equal to the marginal benefit received
Economic Profit
Price discrimination
Price floor
Constrained Utility Maximization
44. The difference between the monopolistic competition output Qmc and the output at minimum ATC. Excess capacity is underused plant and equipment
Unit elastic demand
Oligopoly
Excess Capacity
Consumer surplus
45. Models where firms are competitive rivals seeking to gain at the expense of their rivals
Non-collusive oligopoly
Positive externality
Perfectly inelastic
Resources
46. The lost net benefit to society caused by a movement away from the competitive market equilibrium
Dead Weight Loss
Allocative Efficiency
Substitute Goods
Monopolistic competition long-run equilibrium
47. A legal minimum price below which the product cannot be sold. If a floor is installed at some level above the equilibrium price - it creates a permanent surplus
Resources
Price floor
Income Elasticity
Price discrimination
48. Production inputs that the firm can adjust in the short run to meet changes in demand for their output. Often this is labor and/or raw materials
Variable inputs
Long Run
Income Effect
Cross-Price Elasticity of Demand
49. The mechanism for combining production resources - with existing technology - into finished goods and services
Opportunity Cost
Marginal Product of Labor (MPL)
Production function
Total Product of Labor (TPL)
50. The output where ATC is minimized and economic profit is zero
Law of Demand
Break-even Point
Monopolistic competition
Market Equilibrium
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests