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






2. Land - Capital - Labor - Entrepreneurship.






3. Limited quantities of resources to meet unlimited wants






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






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






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






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






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






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






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






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






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






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






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






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






16. A situation in which quantity demanded equals quantity supplied






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






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






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






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






21. A cost that requires an outlay of money.






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






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






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






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






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






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






28. Total Fixed Cost






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






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






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






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






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






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






35. 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






36. Marginal Cost






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






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






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






40. The price that balances quantity supplied and quantity demanded






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






42. Total Variable Cost






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






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






45. Average Total Cost






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






47. Average Fixed Cost






48. Things that are required in order to live