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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. Marginal Cost






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






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






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






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






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






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






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






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






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






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






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






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






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






15. Total Variable Cost






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






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






18. The price that balances quantity supplied and quantity demanded






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






20. Land - Capital - Labor - Entrepreneurship.






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






22. An opportunity cost incurred by a firm when it uses a factor of production for which it does not make a direct money payment






23. 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






24. Total Fixed Cost






25. Things that are required in order to live






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






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






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






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






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






31. Average Total Cost






32. A situation in which quantity demanded equals quantity supplied






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






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






35. A cost that requires an outlay of money.






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






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






38. Average Fixed Cost






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






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






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






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






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






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






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






46. Limited quantities of resources to meet unlimited wants






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






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