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






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






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






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






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






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






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






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






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






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






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






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






13. Land - Capital - Labor - Entrepreneurship.






14. Marginal Cost






15. Average Total Cost






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






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






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






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






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






21. Things that are required in order to live






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






23. Total Fixed Cost






24. Total Variable Cost






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






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






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






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






29. A cost that requires an outlay of money.






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






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






32. The price that balances quantity supplied and quantity demanded






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






34. Average Fixed Cost






35. 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






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






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






38. Limited quantities of resources to meet unlimited wants






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






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






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






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






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






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






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






46. A situation in which quantity demanded equals quantity supplied






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






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