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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. A situation in which quantity demanded equals quantity supplied






2. Total Fixed Cost






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






4. Land - Capital - Labor - Entrepreneurship.






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






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






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






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






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






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






11. Marginal Cost






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






13. The price that balances quantity supplied and quantity demanded






14. 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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






31. The situation in which a good or service is produced at the lowest possible cost






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






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






34. Total Variable Cost






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






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






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






38. Average Fixed Cost






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






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






41. Things that are required in order to live






42. Limited quantities of resources to meet unlimited wants






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






44. A cost that requires an outlay of money.






45. Average Total Cost






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






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






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