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