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CLEP Microeconomics

Subjects : clep, economics
Instructions:
  • Answer 48 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. The situation in which a good or service is produced at the lowest possible cost






2. Allocating one's income so that the marginal utility/price of the last units obtained of each good are equal






3. Measures the relationship between change in quantity supplied and a change in price.






4. A legal minimum on the price at which a good can be sold






5. As supply increases - prices go down; as supply decreases - prices go up.






6. A maximum price that can be legally charged for a good or service






7. A movement along the demand curve that occurs in response to a change in price






8. A change in supply that is shown by drawing a new supply curve






9. Marginal Cost






10. A movement along the supply curve that occurs in response to a change in price






11. Total Variable Cost






12. Determines and classifies the relationship between income and demand for a good or service.






13. An opportunity cost incurred by a firm when it uses a factor of production for which it does not make a direct money payment






14. Factors other than price that determine the quantities supplied of a good or service.






15. The impact of price changes on the quantity demand of a good or service by gauging the effect on the total revenue the firm will generate






16. As demand increases - prices go up; as demand decreases - prices go down.






17. Those things which make our lives more comfortable but are not needed for survival






18. A model that shows the flow of goods and services and the interaction among households - businesses - and banks






19. Things that are required in order to live






20. As successive units of a variable input are added to a fixed input - beyond some point the marginal product declines






21. The more you produce the less it costs and the cheaper the product is for the consumer.






22. A change in demand that is show by drawing a new demand curve






23. To produce more of one good - a successively larger amount of the other good must be sacrificed






24. A situation in which quantity demanded is greater than quantity supplied






25. Average Fixed Cost






26. A situation in which quantity supplied is greater than quantity demanded






27. A period during which at least one of a firm's resources is fixed






28. Limited quantities of resources to meet unlimited wants






29. Average Total Cost






30. When the last unit produced costs the same as the benefit recieved by consumers






31. Divisions of the economy that specialize in certain goods or services






32. A cost that requires an outlay of money.






33. An alternative that we sacrifice when we make a decision






34. Average Fixed Costs (Declines as output increases.)






35. Describes demand that is very sensitive to a change in price






36. The price that balances quantity supplied and quantity demanded






37. Factors other than price that determine the quantities demanded of a good or service






38. A period of time of sufficient length that all the firm's factors of production are variable






39. A situation in which quantity demanded equals quantity supplied






40. Land - Capital - Labor - Entrepreneurship.






41. Free Market - Traditional - Command - Mixed Markets.






42. The decision to buy one thing instead of another.






43. A measure of the sensitivity of demand to changes in price






44. The total amount of money a firm receives by selling goods or services






45. Total Fixed Cost






46. (Production Possibilities Frontier) A graph that shows the possibilities of combinations of goods and services






47. The maximum amount an individual is willing to pay in a specific scenario






48. Describes demand that is not very sensitive to a change in price