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Test your basic knowledge |
CLEP Microeconomics
Start Test
Study First
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. Marginal Cost
MC
Determinants of Supply
Trade-Off
Change in Demand
2. (Production Possibilities Frontier) A graph that shows the possibilities of combinations of goods and services
TVC
PPF Curve
Equilibrium Price
Change in Demand
3. As successive units of a variable input are added to a fixed input - beyond some point the marginal product declines
Price Ceiling
PPF Curve
Law of Diminishing Marginal Returns
Change in Quantity Demanded
4. Limited quantities of resources to meet unlimited wants
Economic Choice
Circular Flow Model
Law of Diminishing Marginal Returns
Scarcity
5. The maximum amount an individual is willing to pay in a specific scenario
Budget Income Limits
ATC
Shortage
Inelastic
6. A legal minimum on the price at which a good can be sold
Price Elasticity of Supply
Productive Efficiency
Price floor
Trade-Off
7. A period of time of sufficient length that all the firm's factors of production are variable
Market Equilibrium
Cross Elasticity of Demand
Law of Demand
Long Run
8. Average Fixed Cost
Price Elasticity
AVC
Scarcity
AFC
9. Total Variable Cost
Determinants of Demand
TVC
Consumer Utility Maximization
Total Revenue
10. When the last unit produced costs the same as the benefit recieved by consumers
Allocative Efficiency
Circular Flow Model
Budget Income Limits
Explicit Cost
11. Things that are required in order to live
Law of Demand
Shortage
Circular Flow Model
Needs
12. A change in demand that is show by drawing a new demand curve
Long Run
Explicit Cost
Law of Increasing Opportunity Cost
Change in Demand
13. To produce more of one good - a successively larger amount of the other good must be sacrificed
PPF Curve
TVC
Law of Increasing Opportunity Cost
TFC
14. The situation in which a good or service is produced at the lowest possible cost
Allocative Efficiency
Four Factors of Production (Imputs)
Determinants of Supply
Productive Efficiency
15. A situation in which quantity demanded equals quantity supplied
Law of Increasing Opportunity Cost
Change in Demand
Market Equilibrium
Cross Elasticity of Demand
16. Factors other than price that determine the quantities demanded of a good or service
Trade-Off
Price Elasticity of Supply
Determinants of Demand
Change in Quantity Demanded
17. The total amount of money a firm receives by selling goods or services
Change in Quantity Demanded
Total Revenue
Cross Elasticity of Demand
Productive Efficiency
18. Divisions of the economy that specialize in certain goods or services
ATC
Markets
TVC
Market Equilibrium
19. The price that balances quantity supplied and quantity demanded
Cross Elasticity of Income
Cross Elasticity of Demand
Equilibrium Price
Law of Supply
20. As demand increases - prices go up; as demand decreases - prices go down.
Law of Demand
Scarcity
Markets
Price floor
21. Average Total Cost
Consumer Utility Maximization
Circular Flow Model
ATC
Allocative Efficiency
22. The decision to buy one thing instead of another.
PPF Curve
Explicit Cost
Economic Choice
Change in Supply
23. A movement along the supply curve that occurs in response to a change in price
Shortage
Needs
Change in Quantity Supplied
Allocative Efficiency
24. A change in supply that is shown by drawing a new supply curve
Cross Elasticity of Income
Economy of Scale
Change in Demand
Change in Supply
25. Land - Capital - Labor - Entrepreneurship.
ATC
Four Factors of Production (Imputs)
Elastic
Scarcity
26. Allocating one's income so that the marginal utility/price of the last units obtained of each good are equal
Productive Efficiency
AVC
Determinants of Supply
Consumer Utility Maximization
27. Measures the relationship between change in quantity supplied and a change in price.
Needs
Four Factors of Production (Imputs)
Price Elasticity of Supply
Equilibrium Price
28. Those things which make our lives more comfortable but are not needed for survival
MC
Price Elasticity of Supply
Wants
Scarcity
29. Determines and classifies the relationship between income and demand for a good or service.
Markets
Cross Elasticity of Income
Inelastic
PPF Curve
30. The more you produce the less it costs and the cheaper the product is for the consumer.
Explicit Cost
Short Run
TVC
Economy of Scale
31. A situation in which quantity supplied is greater than quantity demanded
Surplus
Needs
Law of Increasing Opportunity Cost
TFC
32. Free Market - Traditional - Command - Mixed Markets.
Total Revenue
Types of Economic Systems
Law of Demand
Four Factors of Production (Imputs)
33. A measure of the sensitivity of demand to changes in price
AFC
Price Elasticity
Cross Elasticity of Demand
Law of Diminishing Marginal Returns
34. Total Fixed Cost
Price floor
Allocative Efficiency
TFC
Law of Supply
35. 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
Implicit Cost
Cross Elasticity of Demand
Cross Elasticity of Income
MC
36. An alternative that we sacrifice when we make a decision
Allocative Efficiency
Equilibrium Price
Price Elasticity
Trade-Off
37. Average Fixed Costs (Declines as output increases.)
ATC
AFC
Surplus
Law of Diminishing Marginal Returns
38. Describes demand that is very sensitive to a change in price
Explicit Cost
Elastic
TVC
Change in Demand
39. As supply increases - prices go down; as supply decreases - prices go up.
Markets
Productive Efficiency
Equilibrium Price
Law of Supply
40. A movement along the demand curve that occurs in response to a change in price
Change in Quantity Demanded
Productive Efficiency
Budget Income Limits
Surplus
41. A cost that requires an outlay of money.
Trade-Off
PPF Curve
Law of Demand
Explicit Cost
42. A model that shows the flow of goods and services and the interaction among households - businesses - and banks
Scarcity
Determinants of Supply
Circular Flow Model
Shortage
43. An opportunity cost incurred by a firm when it uses a factor of production for which it does not make a direct money payment
Implicit Cost
Change in Quantity Demanded
TFC
Determinants of Demand
44. Factors other than price that determine the quantities supplied of a good or service.
Price Elasticity
Trade-Off
Determinants of Supply
Needs
45. Describes demand that is not very sensitive to a change in price
TVC
Types of Economic Systems
Cross Elasticity of Demand
Inelastic
46. A period during which at least one of a firm's resources is fixed
Market Equilibrium
Short Run
Law of Demand
Law of Increasing Opportunity Cost
47. A situation in which quantity demanded is greater than quantity supplied
Change in Demand
Determinants of Supply
PPF Curve
Shortage
48. A maximum price that can be legally charged for a good or service
Short Run
AFC
Needs
Price Ceiling