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