If you need help studying for the CLEP Principles of Microeconomics exam or just want some more information about what the exam is like, you’ve come to the right place!
Click below to take a free CLEP Principles of Microeconomics practice test!
What is a CLEP Test?
A CLEP exam helps you test out of certain intro courses in college. When you pass a CLEP exam, it proves that you know enough about that topic to move on to a more advanced course, which can save you a lot of time toward your degree!
Taking the CLEP Principles of Microeconomics exam can allow you to bypass certain intro courses in microeconomics.
What’s on the Exam?
First, let’s talk about the questions on the exam. There are 80 multiple-choice questions total, but some of the questions will NOT count toward your score. Why is that?
The unscored questions on the CLEP exam are there to determine if they’re good enough questions to add to future versions of the test.
The trick is that you won’t have any way of knowing which questions are scored and which ones aren’t—they will all appear like scored questions throughout the test.
The time limit for the test is 90 minutes (1.5 hours). There aren’t any scheduled breaks, but you’re free to take restroom breaks as needed!
Let’s take a closer look at the different sections of the Principles of Microeconomics test:
Basic Economic Concepts
10%-16% of the exam
- Comparative advantage, specialization, and trade
- Economic systems
- Property rights and the role of incentives
- Scarcity, choice, and opportunity cost
- Production possibilities curve
- Marginal analysis
The Nature and Functions of Product Markets
55%-70% of the exam
- Market equilibrium
- Determinants of supply and demand
- Price and quantity controls
- Elasticity
- Consumer surplus, producer surplus, and market efficiency
- Tax incidence and deadweight loss
Theory of Consumer Choice (5%-10%)
- Total utility and marginal utility
- Utility maximization: equalizing marginal utility per dollar
- Individual and market demand curves
- Income and substitution effects
Production and Costs (5%-10%)
- Production functions: short and long run
- Marginal product and diminishing returns
- Short-run costs
- Long-run costs and economies of scale
- Long-run cost minimizing input combination
Firm Behavior and Market Structure (23%-33%)
- Profit
- Characteristics of different market structures
Factor Markets
6%-12% of the exam
- Derived factor demand
- Marginal revenue product
- Labor market and firms’ hiring of labor
Market Failure and the Role of Government
8%-14% of the exam
- Externalities
- Public goods and services
- Public policy to promote competition
- Income distribution
How to Register
To register for the test, you’ll need to create an account on the College Board’s website. From there, you can sign into the My CLEP student portal and register for the exam.
When you register, you’ll need to pay the $95 testing fee. You’ll also have the option to send your final score to two institutions for free.
CLEP Principles of Microeconomics Study Guide and Flashcards
Get practice questions, detailed study lessons, and complex subjects broken down into easily understandable concepts.
CLEP Scores
The CLEP Principles of Microeconomics exam is scored using a scaled scoring method. Here’s how it works:
For every question you answer correctly, you get one point added to your raw score. At the end of the test, your final raw score will be converted to a scaled score. This scaled score will range somewhere between 20 and 80.
The American Council of Education recommends aiming for a final score of at least 50.
The reason your raw score is converted to a scaled score is because everyone that takes the test is given a slightly different set of questions. Since everyone has a different arrangement of questions, and because some questions are harder than others, converting your raw score to a scaled score ensures a more even playing field.
FAQs
What is CLEP?
CLEP stands for College-Level Examination Program®. This program was set up by the College Board to help students earn college credits without taking college courses.
Are CLEP exams hard?
It depends on which one you take! Some CLEP exams are harder than others due to the material being covered. For example, the Chemistry and Western Civilization II tests are considered to be the hardest, while the Spanish Language and College Composition tests are thought to be the easiest.
How many questions are on the CLEP Principles of Microeconomics exam?
The exam contains 80 questions.
What is the time limit for the CLEP Principles of Microeconomics exam?
The exam is timed at 90 minutes.
What is the passing score for the CLEP Principles of Microeconomics exam?
It’s recommended that you get a final score of at least 50.
How much does the CLEP Principles of Microeconomics exam cost?
The testing fee is $95.