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