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CLEP Microeconomics

Subjects : clep, economics
  • Answer 48 questions in 15 minutes.
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  • 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 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

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

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

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

5. Average Fixed Cost

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

7. Marginal Cost

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

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

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

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

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

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

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

15. Land - Capital - Labor - Entrepreneurship.

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

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

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

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

20. Average Total Cost

21. A situation in which quantity demanded equals quantity supplied

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

23. Limited quantities of resources to meet unlimited wants

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

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

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

27. Things that are required in order to live

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

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

30. Total Fixed Cost

31. Total Variable Cost

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

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

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

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

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

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

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

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

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

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

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

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

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

45. The price that balances quantity supplied and quantity demanded

46. A cost that requires an outlay of money.

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

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