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