CLEP Microeconomics chapter practice4 questions

34 Common CLEP Traps

These questions come directly from the chapter practice in the book. Choose the best answer, check your reasoning, and use the explanation to correct any gap.

Question 1

Question 1 of 4

A question states that consumers buy more oranges after the price of oranges falls. Which answer avoids the movement-versus-shift trap?

The good's own price changed, so the result is movement along demand and an increase in quantity demanded, not a shift.
Show answer and explanation

B. Quantity demanded increased along the existing demand curve.

The good's own price changed, so the result is movement along demand and an increase in quantity demanded, not a shift.

Question 2

Question 2 of 4

A monopolist's marginal revenue at the chosen quantity is 18, while the demand price is 30. Which value is the price charged?

A monopolist uses marginal revenue to select quantity but reads price from demand. Confusing MR with price is a standard trap.
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E. $30

A monopolist uses marginal revenue to select quantity but reads price from demand. Confusing MR with price is a standard trap.

Question 3

Question 3 of 4

A table reports total product of 100 with four workers and 124 with five workers. Which value is marginal product of the fifth worker?

Marginal product is the adjacent change in total product: 124-100=24. Dividing 124 by five gives average product.
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D. 24

Marginal product is the adjacent change in total product: 124-100=24. Dividing 124 by five gives average product.

Question 4

Question 4 of 4

A tax raises the buyer price by 3, lowers the seller price by 2, and reduces sales to 600 units. Which statement is correct?

The buyer and seller price changes sum to a 5 tax wedge. Revenue is 5(600)=3,000$.
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C. The tax is 5 per unit and revenue is 3,000.

The buyer and seller price changes sum to a 5 tax wedge. Revenue is 5(600)=3,000$.

Quiz complete