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