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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 measure of the sensitivity of demand to changes in price






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






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






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






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






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






7. The price that balances quantity supplied and quantity demanded






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






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






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






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






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






13. Total Variable Cost






14. Limited quantities of resources to meet unlimited wants






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






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






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






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






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






20. Land - Capital - Labor - Entrepreneurship.






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






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






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






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






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






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






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






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






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






30. Marginal Cost






31. Total Fixed Cost






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






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






34. A situation in which quantity demanded equals quantity supplied






35. Average Fixed Cost






36. Average Total Cost






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






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






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






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






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






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






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






44. Things that are required in order to live






45. A cost that requires an outlay of money.






46. 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






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






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