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

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

3. Limited quantities of resources to meet unlimited wants

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

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

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

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

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

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

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

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

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

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

14. Average Fixed Cost

15. Total Fixed Cost

16. Things that are required in order to live

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

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

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

20. Average Total Cost

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

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

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

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

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

26. Land - Capital - Labor - Entrepreneurship.

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

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

29. A situation in which quantity demanded equals quantity supplied

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

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

32. 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

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

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

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

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

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

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

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

40. Total Variable Cost

41. Marginal Cost

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

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

44. A cost that requires an outlay of money.

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

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

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

48. The price that balances quantity supplied and quantity demanded