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