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Test your basic knowledge |
CLEP Microeconomics
Start Test
Study First
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. Factors other than price that determine the quantities demanded of a good or service
Determinants of Demand
Short Run
Cross Elasticity of Demand
Four Factors of Production (Imputs)
2. Describes demand that is not very sensitive to a change in price
Cross Elasticity of Income
Shortage
Inelastic
AVC
3. A change in supply that is shown by drawing a new supply curve
Change in Supply
Determinants of Demand
Wants
Change in Demand
4. Describes demand that is very sensitive to a change in price
Markets
Elastic
Market Equilibrium
Law of Diminishing Marginal Returns
5. Average Total Cost
ATC
Scarcity
Determinants of Supply
Change in Supply
6. A movement along the supply curve that occurs in response to a change in price
Consumer Utility Maximization
Price floor
Change in Quantity Supplied
Determinants of Supply
7. A change in demand that is show by drawing a new demand curve
Price Elasticity of Supply
Circular Flow Model
Change in Demand
TVC
8. An alternative that we sacrifice when we make a decision
Trade-Off
Budget Income Limits
Surplus
Elastic
9. A measure of the sensitivity of demand to changes in price
Equilibrium Price
Total Revenue
Price Elasticity
Elastic
10. Those things which make our lives more comfortable but are not needed for survival
ATC
Four Factors of Production (Imputs)
Price Elasticity
Wants
11. Allocating one's income so that the marginal utility/price of the last units obtained of each good are equal
Consumer Utility Maximization
Price floor
Total Revenue
Change in Demand
12. Average Fixed Costs (Declines as output increases.)
Inelastic
Determinants of Demand
Trade-Off
AFC
13. Average Fixed Cost
Equilibrium Price
Price Elasticity of Supply
Implicit Cost
AVC
14. A maximum price that can be legally charged for a good or service
Consumer Utility Maximization
Change in Quantity Supplied
Price Ceiling
Total Revenue
15. A situation in which quantity supplied is greater than quantity demanded
Price Elasticity
Surplus
Explicit Cost
Scarcity
16. As supply increases - prices go down; as supply decreases - prices go up.
Consumer Utility Maximization
Price Elasticity
Law of Supply
Long Run
17. Free Market - Traditional - Command - Mixed Markets.
Types of Economic Systems
Consumer Utility Maximization
Cross Elasticity of Income
Equilibrium Price
18. The maximum amount an individual is willing to pay in a specific scenario
Law of Demand
Law of Diminishing Marginal Returns
Budget Income Limits
Wants
19. Determines and classifies the relationship between income and demand for a good or service.
Cross Elasticity of Income
Inelastic
Productive Efficiency
PPF Curve
20. A situation in which quantity demanded equals quantity supplied
Market Equilibrium
Economic Choice
TFC
Budget Income Limits
21. To produce more of one good - a successively larger amount of the other good must be sacrificed
Law of Increasing Opportunity Cost
Four Factors of Production (Imputs)
Law of Demand
Determinants of Demand
22. A situation in which quantity demanded is greater than quantity supplied
Shortage
Surplus
Price Ceiling
Scarcity
23. (Production Possibilities Frontier) A graph that shows the possibilities of combinations of goods and services
PPF Curve
Economic Choice
Change in Quantity Supplied
Economy of Scale
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
Wants
Law of Demand
Implicit Cost
Consumer Utility Maximization
25. A legal minimum on the price at which a good can be sold
Law of Demand
Price floor
TVC
Scarcity
26. The situation in which a good or service is produced at the lowest possible cost
Equilibrium Price
Productive Efficiency
Circular Flow Model
Trade-Off
27. Measures the relationship between change in quantity supplied and a change in price.
Explicit Cost
Price Elasticity of Supply
Needs
Trade-Off
28. A cost that requires an outlay of money.
Change in Demand
Determinants of Supply
Explicit Cost
Price floor
29. Limited quantities of resources to meet unlimited wants
Consumer Utility Maximization
Scarcity
Economic Choice
Determinants of Supply
30. Total Variable Cost
Elastic
Determinants of Demand
TVC
Long Run
31. Divisions of the economy that specialize in certain goods or services
Markets
Change in Demand
AVC
Types of Economic Systems
32. Marginal Cost
Change in Demand
MC
Budget Income Limits
Markets
33. When the last unit produced costs the same as the benefit recieved by consumers
Price floor
Law of Diminishing Marginal Returns
Equilibrium Price
Allocative Efficiency
34. As demand increases - prices go up; as demand decreases - prices go down.
Economy of Scale
Law of Demand
Price Ceiling
Needs
35. The price that balances quantity supplied and quantity demanded
Change in Quantity Supplied
Law of Diminishing Marginal Returns
Equilibrium Price
Allocative Efficiency
36. A period of time of sufficient length that all the firm's factors of production are variable
Long Run
Needs
Scarcity
Market Equilibrium
37. The more you produce the less it costs and the cheaper the product is for the consumer.
PPF Curve
MC
Economy of Scale
Price floor
38. A movement along the demand curve that occurs in response to a change in price
Cross Elasticity of Demand
Implicit Cost
Change in Quantity Supplied
Change in Quantity Demanded
39. The decision to buy one thing instead of another.
Economy of Scale
Economic Choice
Markets
Elastic
40. Things that are required in order to live
Explicit Cost
Law of Demand
Needs
Budget Income Limits
41. The total amount of money a firm receives by selling goods or services
ATC
Total Revenue
Law of Supply
Change in Quantity Supplied
42. A period during which at least one of a firm's resources is fixed
ATC
Law of Diminishing Marginal Returns
Short Run
Allocative Efficiency
43. Land - Capital - Labor - Entrepreneurship.
Change in Quantity Supplied
Four Factors of Production (Imputs)
Change in Quantity Demanded
Determinants of Demand
44. Total Fixed Cost
AFC
Explicit Cost
TFC
Price Ceiling
45. A model that shows the flow of goods and services and the interaction among households - businesses - and banks
ATC
Circular Flow Model
Short Run
Wants
46. 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
Change in Quantity Supplied
AVC
Cross Elasticity of Demand
Law of Supply
47. As successive units of a variable input are added to a fixed input - beyond some point the marginal product declines
Price floor
Law of Diminishing Marginal Returns
Surplus
Cross Elasticity of Income
48. Factors other than price that determine the quantities supplied of a good or service.
Elastic
Change in Quantity Demanded
Law of Increasing Opportunity Cost
Determinants of Supply