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






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






3. The price that balances quantity supplied and quantity demanded






4. Things that are required in order to live






5. Average Total Cost






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






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






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






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






10. Land - Capital - Labor - Entrepreneurship.






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






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






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






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






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






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






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






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






19. Average Fixed Cost






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






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






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






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






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






25. Total Fixed Cost






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






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






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






29. A cost that requires an outlay of money.






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






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






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






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






34. Total Variable Cost






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






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






37. Marginal Cost






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






39. Limited quantities of resources to meet unlimited wants






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






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






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






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






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






45. A situation in which quantity demanded equals quantity supplied






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






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






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