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