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