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CLEP Microeconomics

Subjects : clep, economics
  • Answer 48 questions in 15 minutes.
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  • 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.

2. Average Fixed Cost

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

4. Total Variable Cost

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

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

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

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

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

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

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

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

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

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

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

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

17. Land - Capital - Labor - Entrepreneurship.

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

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

20. Limited quantities of resources to meet unlimited wants

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

22. 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

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

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

25. A situation in which quantity demanded equals quantity supplied

26. Things that are required in order to live

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

28. Total Fixed Cost

29. Marginal Cost

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

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

32. Average Total Cost

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

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

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

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

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

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

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

40. The price that balances quantity supplied and quantity demanded

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

42. A cost that requires an outlay of money.

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

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

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

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

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

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