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






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






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






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






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






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






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






8. Total Variable Cost






9. Average Total Cost






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






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






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






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






14. 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






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






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






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






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






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






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






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






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






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






24. A situation in which quantity demanded equals quantity supplied






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






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






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






28. Average Fixed Cost






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






30. Land - Capital - Labor - Entrepreneurship.






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






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






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






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






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






36. Limited quantities of resources to meet unlimited wants






37. Things that are required in order to live






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






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






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






41. The price that balances quantity supplied and quantity demanded






42. A cost that requires an outlay of money.






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






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






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






46. Total Fixed Cost






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






48. Marginal Cost