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