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






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






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






4. 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






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






6. Average Total Cost






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






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






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






10. Total Fixed Cost






11. Marginal Cost






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






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






14. A cost that requires an outlay of money.






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






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






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






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






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






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






21. Limited quantities of resources to meet unlimited wants






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






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






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






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






26. The price that balances quantity supplied and quantity demanded






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






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






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






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






31. Average Fixed Cost






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






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






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






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






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






37. Total Variable Cost






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






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






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






41. Land - Capital - Labor - Entrepreneurship.






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






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






44. A situation in which quantity demanded equals quantity supplied






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






46. Things that are required in order to live






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






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