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