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CLEP Microeconomics

Subjects : clep, economics
  • Answer 48 questions in 15 minutes.
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  • 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 period during which at least one of a firm's resources is fixed

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

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

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

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

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

7. Land - Capital - Labor - Entrepreneurship.

8. Average Fixed Cost

9. 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

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

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

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

13. Total Fixed Cost

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

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

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

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

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

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

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

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

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

23. The price that balances quantity supplied and quantity demanded

24. Limited quantities of resources to meet unlimited wants

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

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

27. A cost that requires an outlay of money.

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

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

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

31. Average Total Cost

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

33. Marginal Cost

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

35. Total Variable Cost

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

37. Things that are required in order to live

38. A situation in which quantity demanded equals quantity supplied

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

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

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

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

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

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

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

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

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

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