Principles of Microeconomics
-CLEP* Test
Principles of Microeconomics CLEP
Test Version 2
The CLEP Practice Tests above contain 229 multiple-choice practice test questions with study guides (detailed explanations).
The ACE (American Council on Education) recommends 3 lower level college
credits for this exam.
Studying, and passing, the practice tests above will allow you to
confidently take and pass your Principles of Microeconomics CLEP test. The overall
key concepts, and specific individual points, that will allow you to pass your
test are within the practice questions and detailed explanations.
Course Information and Overview
This exam covers material that is typically taught in a semester introductory-level college course. The multiple-choice DANTES/DSST exam consists of about
80 questions and allows 90 minutes to complete.
Successfully passing this CLEP test requires knowledge and understanding of
important economic concepts and terms, understanding and interpretation of
economic graphs, evaluation and interpretation of economic data, and application
of simple economic models.
The Principles of Microeconomics CLEP exam contains questions that come from the following topics:
- Basic Economic Concepts (8-14%)
Economic systems
Analysis of margins
Opportunity cost, scarcity and choice
Comparative advantage
Property rights and incentives
- Supply and Demand (15-20%)
Price elasticity
Equilibrium of markets
Supply and demand determinants
Differentiation
Consumer and supplier surplus
Market efficiency
- Theory of Consumer Choice (5-10%)
Marginal utility
Total utility
Demand curves
Substitution of products
Price factors
- Production and Costs (10-15%)
Short and long run production and costs
The law of diminishing returns
Cost minimization
Economies of scale
- Firm Behavior and Market Structure (25-35%)
Analyzing profits
Profit maximization (MR=MC)
Perfect competition
Monopolies
Price discrimination
Cartels and collusion
Product differentiation vs. substitution
Capacity and efficiency
Short and long run supply issues
Market power
Oligopoly
Strategic behavior and game theory
- Factor Markets (10-18%)
Labor markets
Distribution of income within markets
Derived factor demand
- Market Failure and the Role of Government (12-18%)
Externalities, positive and negative, and remedies
Public goods vs. private goods, provision of goods
Competition promotion, antitrust policies and regulation
Income distribution, equity, and income source inequality
Complete information and a fact sheet (PDF Format) of what is covered is available from
The College Board.