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CLEP Microeconomics

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. Average Fixed Cost






2. The maximum amount an individual is willing to pay in a specific scenario






3. An alternative that we sacrifice when we make a decision






4. As demand increases - prices go up; as demand decreases - prices go down.






5. Those things which make our lives more comfortable but are not needed for survival






6. Marginal Cost






7. Factors other than price that determine the quantities supplied of a good or service.






8. The price that balances quantity supplied and quantity demanded






9. Average Fixed Costs (Declines as output increases.)






10. Measures the relationship between change in quantity supplied and a change in price.






11. Divisions of the economy that specialize in certain goods or services






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






13. A cost that requires an outlay of money.






14. Allocating one's income so that the marginal utility/price of the last units obtained of each good are equal






15. Determines and classifies the relationship between income and demand for a good or service.






16. As successive units of a variable input are added to a fixed input - beyond some point the marginal product declines






17. Describes demand that is not very sensitive to a change in price






18. Free Market - Traditional - Command - Mixed Markets.






19. Factors other than price that determine the quantities demanded of a good or service






20. Limited quantities of resources to meet unlimited wants






21. A maximum price that can be legally charged for a good or service






22. A situation in which quantity supplied is greater than quantity demanded






23. A period during which at least one of a firm's resources is fixed






24. A legal minimum on the price at which a good can be sold






25. The more you produce the less it costs and the cheaper the product is for the consumer.






26. Land - Capital - Labor - Entrepreneurship.






27. To produce more of one good - a successively larger amount of the other good must be sacrificed






28. Total Variable Cost






29. A movement along the supply curve that occurs in response to a change in price






30. Total Fixed Cost






31. Average Total Cost






32. Describes demand that is very sensitive to a change in price






33. A change in demand that is show by drawing a new demand curve






34. The situation in which a good or service is produced at the lowest possible cost






35. A change in supply that is shown by drawing a new supply curve






36. (Production Possibilities Frontier) A graph that shows the possibilities of combinations of goods and services






37. A situation in which quantity demanded equals quantity supplied






38. 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






39. A model that shows the flow of goods and services and the interaction among households - businesses - and banks






40. When the last unit produced costs the same as the benefit recieved by consumers






41. As supply increases - prices go down; as supply decreases - prices go up.






42. The total amount of money a firm receives by selling goods or services






43. A period of time of sufficient length that all the firm's factors of production are variable






44. Things that are required in order to live






45. The decision to buy one thing instead of another.






46. A movement along the demand curve that occurs in response to a change in price






47. A measure of the sensitivity of demand to changes in price






48. A situation in which quantity demanded is greater than quantity supplied