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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. Average Fixed Costs (Declines as output increases.)






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






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






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






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






7. Limited quantities of resources to meet unlimited wants






8. 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






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






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






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






12. Average Total Cost






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






14. Marginal Cost






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






16. Things that are required in order to live






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






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






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






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






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






22. Total Variable Cost






23. A cost that requires an outlay of money.






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






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






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






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






28. Average Fixed Cost






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






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






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






32. Land - Capital - Labor - Entrepreneurship.






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






34. Total Fixed Cost






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






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






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






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






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






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






41. The price that balances quantity supplied and quantity demanded






42. A situation in which quantity demanded equals quantity supplied






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






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






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






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






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






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