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