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