Practice Quiz

CLEP Microeconomics Exam Prep - Question List

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26. Prices for goods and services depend largely on the product’s lifecycle. Which is the correct stage progression in a product’s lifecycle?
  1. Launch - maturity - decline
  2. Growth - proliferation - maturity - decline
  3. Growth - maturity - decline
  4. Launch - growth - maturity - decline
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27. The luxury clothing market is known to be especially vulnerable to economic recessions as people curtail spending on expensive non-essentials. Some luxury clothing retailers resort to selling these same goods at outlet markets in an effort to lure customers who are unwilling or unable to pay. This is an example of:
  1. First degree price discrimination
  2. Price stickiness
  3. Second degree price discrimination
  4. Demand-pull inflation
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28. In recent years, Microsoft has been accused of unfair competitive practices and an unequal access to consumers. Another negative consequence of the free-market economy is:
  1. Reduced pricing due to increased consumer choice
  2. Global competition
  3. Lack of adherence to social and environmental goals
  4. Supplies’ shortages
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29. In the quantity theory of money, what does the (P) stand for as seen in the equation MV = PY?
  1. Period
  2. Peak
  3. Product
  4. Price
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30. Price Elasticity of Demand (PED) illustrates how well quantities of goods and services demanded by consumers respond to changes in prices. The following are determinants of PED except:
  1. Income percentage spent on goods
  2. Availability of substitute goods and services
  3. Decreased choice
  4. Time period
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