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