Principles of Microeconomics
3 free practice tests · 80 questions each · 1h 30min · No sign-up required
About This Exam
The CLEP Principles of Microeconomics exam covers material typically taught in a one-semester introductory microeconomics course at the college level. It tests your understanding of how individual consumers and firms make decisions, how markets function, and the role of government in the economy.
What's Covered
- Supply and demand — how prices and quantities are determined in competitive markets, shifts vs. movements along curves, and equilibrium
- Elasticity — price elasticity of demand and supply, income elasticity, cross-price elasticity, and their applications to tax incidence and consumer behavior
- Consumer choice — utility theory, budget constraints, indifference curves, and how consumers maximize satisfaction
- Production and costs — short-run vs. long-run production, marginal product, diminishing returns, fixed and variable costs, economies of scale
- Market structures — perfect competition, monopoly, monopolistic competition, and oligopoly, including profit maximization and pricing behavior in each
- Factor markets — labor demand and supply, wage determination, marginal revenue product
- Market failure and government intervention — externalities, public goods, price controls, taxes, subsidies, and antitrust policy
For the official exam description, see the College Board CLEP Microeconomics page.
Study Tips
- Master supply and demand graphs first. They appear throughout the exam and form the foundation for nearly every other topic.
- Know the differences between market structures cold — how firms set prices, the number of firms, barriers to entry, and long-run profit outcomes for each.
- Practice calculating elasticity, consumer and producer surplus, and deadweight loss. These are common quantitative questions.
- Understand marginal analysis — marginal cost equals marginal revenue is the profit-maximizing rule that applies across all market structures.
- Don't confuse accounting profit with economic profit. The exam tests this distinction directly.
How to Register
Register at clep.collegeboard.org. The exam costs $97 and can be taken at a testing center or remotely. Check with your college for their CLEP credit policy and minimum score requirements before registering. Military service members, their spouses, and eligible veterans may be able to take the exam at no cost through DANTES funding.
About Our Practice Tests
All questions are original and written to match the difficulty, format, and topic coverage of the real exam based on official exam descriptions. We offer two modes: Practice Mode gives you instant feedback and explanations after each question, and Test Mode simulates the real exam with a timer and no feedback until you submit. Both modes are completely free with no account required.