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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 cost that requires an outlay of money.






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






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






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






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






6. Marginal Cost






7. Things that are required in order to live






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






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






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






11. The price that balances quantity supplied and quantity demanded






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






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






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






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






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






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






18. Total Fixed Cost






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






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






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






22. A situation in which quantity demanded equals quantity supplied






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






24. Limited quantities of resources to meet unlimited wants






25. Average Total Cost






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






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






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






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






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






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






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






33. Land - Capital - Labor - Entrepreneurship.






34. Total Variable Cost






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






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






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






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






39. 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






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






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






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






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






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






45. Average Fixed Cost






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






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






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