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

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

3. Marginal Cost

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

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

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

7. 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

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

9. Total Variable Cost

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

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

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

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

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

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

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

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

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

19. Average Fixed Cost

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

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

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

23. Total Fixed Cost

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

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

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

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

28. Land - Capital - Labor - Entrepreneurship.

29. Things that are required in order to live

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

31. A situation in which quantity demanded equals quantity supplied

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

33. The price that balances quantity supplied and quantity demanded

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

35. Limited quantities of resources to meet unlimited wants

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

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

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

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

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

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

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

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

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

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

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

47. Average Total Cost

48. A cost that requires an outlay of money.