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