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- 39-page printable PDF
- 177 terms with examples
- 43 practice questions, answers explained
- 2-page cram sheet and study plans
← CLEP Microeconomics course
CLEP® Study Guide
Printable PDF · 39 pages
CLEP Microeconomics Study Guide
Official exam name: Principles of Microeconomics
Everything the CLEP Microeconomics exam tests, in one PDF you can print. Built from the College Board's official outline, heaviest topics first.
- 177 key terms, each with an example
- 43 practice questions with every answer explained
- A 2-page cram sheet for the night before
- 2-, 4- and 8-week study plans built from the exam weights
Last updated 2026 · exam details checked against the College Board's published exam information in 2026
Look inside the guide
Real pages from the 39-page PDF.
What you get for $5
One chapter for each official content area, in the order the exam weighs them.
- 📘39pages, printable
- 🧭7chapters, heaviest first
- 🔑177terms with examples
- ✍️43practice questions, answers explained
- ⚠️21exam traps to avoid
- 📄2page cram sheet
Try 10 free Microeconomics questions
In the style of the real exam, from all 7 areas. About 10 minutes, with every answer explained and a score by area.
10 questions
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Question 1 · Firm behavior and market structure
A graphic designer quits a $70,000 job to open her own studio. In the first year her revenue is $180,000 and her explicit costs are $100,000. What are her accounting profit and economic profit?
Show the answer
Answer: A. $80,000 and $10,000. Accounting profit is $180,000 - $100,000 = $80,000. Economic profit also subtracts the $70,000 salary she gave up, an implicit cost, leaving $10,000.
The trap: Treating the two as equal ignores the implicit cost of her forgone salary; only accounting profit leaves it out.
Accounting profit is $180,000 - $100,000 = $80,000. Economic profit also subtracts the $70,000 salary she gave up, an implicit cost, leaving $10,000.
The trap: Treating the two as equal ignores the implicit cost of her forgone salary; only accounting profit leaves it out.
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Question 2 · Supply and demand
A hurricane destroys much of the orange crop. What happens in the market for orange juice?
Show the answer
Answer: C. Supply shifts left, so price rises and quantity sold falls. Fewer oranges raise producers' costs and cut how much juice is offered at every price. The supply curve shifts left, which raises the equilibrium price and lowers the quantity.
The trap: Supply shifts left with price and quantity both rising mixes up a supply shift with a demand shift. A leftward supply shift lowers quantity.
Fewer oranges raise producers' costs and cut how much juice is offered at every price. The supply curve shifts left, which raises the equilibrium price and lowers the quantity.
The trap: Supply shifts left with price and quantity both rising mixes up a supply shift with a demand shift. A leftward supply shift lowers quantity.
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Question 3 · Basic Economic Concepts
A student can spend Friday evening working a $60 shift, watching a game with friends, or studying for an exam. She studies; her next-best choice was the shift. What is her opportunity cost?
Show the answer
Answer: D. The $60 she gave up from the shift. Opportunity cost is the value of the best alternative given up. Her next-best use of the evening was the shift, so the cost is the $60.
The trap: The game plus the $60 adds both alternatives, but opportunity cost counts only the single best one given up.
Opportunity cost is the value of the best alternative given up. Her next-best use of the evening was the shift, so the cost is the $60.
The trap: The game plus the $60 adds both alternatives, but opportunity cost counts only the single best one given up.
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Question 4 · Production and costs
A bakery has one oven. Total output is 10 loaves with 1 worker, 26 with 2, 40 with 3 and 50 with 4. With which worker do diminishing marginal returns begin?
Show the answer
Answer: B. The third worker. Marginal products are 10, 16, 14 and 10. Marginal product first falls with the third worker, so that is where diminishing returns begin.
The trap: Total output still rising is tempting, but diminishing returns concern marginal product, which already falls from the second to the third worker.
Marginal products are 10, 16, 14 and 10. Marginal product first falls with the third worker, so that is where diminishing returns begin.
The trap: Total output still rising is tempting, but diminishing returns concern marginal product, which already falls from the second to the third worker.
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Question 5 · Market Failure and the Role of Government
A paper mill's pollution imposes $8 of damage on downstream residents for every ton of paper it makes. Which policy would lead the mill to produce the efficient quantity?
Show the answer
Answer: E. A tax of $8 per ton of paper. A tax equal to the $8 external cost makes the mill face the full social cost of each ton, so it cuts output to the efficient level.
The trap: A subsidy would lower the mill's cost and increase output. That makes the overproduction worse, not better.
A tax equal to the $8 external cost makes the mill face the full social cost of each ton, so it cuts output to the efficient level.
The trap: A subsidy would lower the mill's cost and increase output. That makes the overproduction worse, not better.
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Question 6 · Factor Markets
In a perfectly competitive market, a worker's marginal product is 8 units of output, each of which sells for $5. The going wage is $30 an hour. What should the firm do?
Show the answer
Answer: E. Hire the worker, since the extra output brings in $40. Marginal revenue product is 8 × $5 = $40, which is more than the $30 wage, so the worker adds more to revenue than to cost.
The trap: Comparing the wage with the $5 output price mixes up units: the wage must be compared with the revenue from all 8 units, not one.
Marginal revenue product is 8 × $5 = $40, which is more than the $30 wage, so the worker adds more to revenue than to cost.
The trap: Comparing the wage with the $5 output price mixes up units: the wage must be compared with the revenue from all 8 units, not one.
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Question 7 · Theory of consumer choice
A visitor records total utility from rides at a fair: 1 ride = 15 utils, 2 = 27, 3 = 35, 4 = 39, 5 = 40. What is the marginal utility of the third ride?
Show the answer
Answer: C. 8 utils. Marginal utility is the change in total utility from one more unit: 35 minus 27 equals 8 utils.
The trap: 35 utils is the total utility after three rides. Marginal utility is the extra from the third ride alone.
Marginal utility is the change in total utility from one more unit: 35 minus 27 equals 8 utils.
The trap: 35 utils is the total utility after three rides. Marginal utility is the extra from the third ride alone.
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Question 8 · Firm behavior and market structure
A perfectly competitive firm sells at a market price of $12. The marginal cost of its 40th unit is $9, of its 41st is $11 and of its 42nd is $14. Which output maximizes profit?
Show the answer
Answer: A. 41 units. Marginal revenue equals the $12 price. The 41st unit adds $12 of revenue and only $11 of cost, but the 42nd adds $12 and costs $14. Stop at 41.
The trap: Stopping at 40 gives up the 41st unit, which still adds $1 of profit; the 40th unit's marginal cost is below price.
Marginal revenue equals the $12 price. The 41st unit adds $12 of revenue and only $11 of cost, but the 42nd adds $12 and costs $14. Stop at 41.
The trap: Stopping at 40 gives up the 41st unit, which still adds $1 of profit; the 40th unit's marginal cost is below price.
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Question 9 · Supply and demand
The price of hot dogs rises sharply. What is the effect in the market for hot dog buns?
Show the answer
Answer: D. The demand curve for buns shifts left. Hot dogs and buns are complements. A higher hot dog price means fewer hot dogs bought, so buyers want fewer buns at every bun price and bun demand shifts left.
The trap: A fall in quantity demanded along an unchanged curve happens only when the bun's own price rises. Here the cause is another good's price, so the whole curve shifts.
Hot dogs and buns are complements. A higher hot dog price means fewer hot dogs bought, so buyers want fewer buns at every bun price and bun demand shifts left.
The trap: A fall in quantity demanded along an unchanged curve happens only when the bun's own price rises. Here the cause is another good's price, so the whole curve shifts.
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Question 10 · Basic Economic Concepts
During a deep recession, many factories sit idle and the economy produces a combination of computers and food that lies well inside its production possibilities curve. Which statement is correct?
Show the answer
Answer: B. More of both goods could be produced by using idle resources. A point inside the curve means resources are unused or poorly used, so more of both goods could be made without any new resources or technology.
The trap: Productively efficient describes points on the curve. A point inside the curve wastes resources, so it is not efficient.
A point inside the curve means resources are unused or poorly used, so more of both goods could be made without any new resources or technology.
The trap: Productively efficient describes points on the curve. A point inside the curve wastes resources, so it is not efficient.
The CLEP Microeconomics exam at a glance
The CLEP Principles of Microeconomics exam is a 90-minute, computer-based test from the College Board with about 80 multiple-choice questions. A score of 50 on the 20–80 scale earns an ACE credit recommendation of 3 semester hours, though each college sets its own policy. The exam covers 7 content areas; the heaviest is Firm behavior and market structure at 23–33%.
- Questions
- About 80multiple choice
- Time
- 90 minabout 68 seconds a question
- Passing score
- 50on a 20–80 scale
- ACE credit
- 3semester hours
- Exam fee
- $97paid to College Board
- Calculator
- Nonot allowed
Source: official CLEP Principles of Microeconomics exam page.
What the exam covers
7 areas, heaviest first. The guide's chapters follow this order.
- Firm behavior and market structure23–33%
- Supply and demand15–20%
- Basic Economic Concepts10–16%
- Production and costs10–15%
- Market Failure and the Role of Government8–14%
- Factor Markets6–12%
- Theory of consumer choice5–10%
How it works
- 1Buy once, $5Secure checkout. No subscription needed.
- 2Download the PDFFrom your TransferCredit.org account, right away and any time later.
- 3Study the heaviest areas firstFollow the 2-, 4- or 8-week plan, then read the cram sheet the night before.
Questions students ask
What's in the full CLEP Microeconomics study guide?
39 pages: 7 chapters, one per official content area, heaviest first. 177 terms, each with a plain-English definition and an example, 7 key people, common traps and memory tricks, 43 practice questions with an answer key that explains every answer, question tactics, 2-, 4- and 8-week study plans and a 2-page cram sheet.
How much is the full CLEP Microeconomics study guide?
The full 39-page PDF is $5, a one-time payment. The 10 practice questions on this page are free, with no account.
What does the $29 plan include?
$29 a month gives you all 28 CLEP subjects: every CLEP study guide plus the full prep course for each subject, and you can cancel anytime. If you only need this exam, the guide on its own is a one-time $5.
How do I get the full guide?
Choose Buy this guide ($5) and check out. Then sign in to your TransferCredit.org account, then open the course and its Download Your Study Guide lesson. The PDF is yours to keep, and you can download it again from your account at any time.
Can I print the guide or use it on my phone?
Yes. It's a PDF, so it opens on phones, tablets and computers, and printing is allowed. Its tick boxes and answer bubbles work in PDF readers that support forms. Copying and editing are turned off.
Is this an official CLEP study guide?
No. CLEP® is a registered trademark of the College Board, which was not involved in producing this guide and does not endorse it. TransferCredit.org is independent. We built the guide from the official exam outline, and the exam details were checked against the College Board's published exam information in 2026.
Why is this study guide better than a generic review?
It follows the official outline area by area and spends the most pages on what the exam weighs most. Every term comes with an example, each chapter names the traps the exam sets, and the answer key explains why the most tempting wrong answer is wrong, not just which answer is right. It ends with a 2-page cram sheet for the night before.
What is the CLEP Microeconomics exam?
The CLEP Principles of Microeconomics exam is a 90-minute, computer-based test from the College Board with about 80 multiple-choice questions. A score of 50 on the 20–80 scale earns an ACE credit recommendation of 3 semester hours, though each college sets its own policy. The exam covers 7 content areas; the heaviest is Firm behavior and market structure at 23–33%.
More questions about the CLEP Microeconomics exam (19)
How many questions are on the CLEP Microeconomics exam, and how long is it?
The exam has approximately 80 questions to be answered in 90 minutes. Some of the questions are pretest questions that will not be scored.
What is the passing score for CLEP Microeconomics?
The passing score is 50 on a 20–80 scale. At 50 or above, the American Council on Education (ACE) recommends 3 semester hours. Each college sets its own passing score and credit award, so check your school's policy before you book.
How much does the CLEP Microeconomics exam cost?
The exam fee is $97, paid to the College Board. Test centers may add their own administration fee. Eligible U.S. military service members can usually test for free through DANTES.
How many college credits is CLEP Microeconomics worth?
ACE recommends 3 semester hours for a passing score of 50. Your college decides how many credits it awards and which course they replace. Check your college's policy.
Is there a penalty for guessing on CLEP Microeconomics?
No. Your score counts only correct answers, so a wrong answer costs nothing. Never leave a question blank: rule out what you can and pick your best guess.
What topics are on the CLEP Microeconomics exam?
7 content areas, from the official outline: Firm behavior and market structure (23–33%); Supply and demand (15–20%); Basic Economic Concepts (10–16%); Production and costs (10–15%); Market Failure and the Role of Government (8–14%); Factor Markets (6–12%); Theory of consumer choice (5–10%).
Which CLEP Microeconomics topics should I study first?
Start with the three heaviest: Firm behavior and market structure (23–33%), Supply and demand (15–20%) and Basic Economic Concepts (10–16%). Together they are about 58% of the exam, roughly 48 of 80 questions. The guide's chapters run in that order, heaviest first.
Is the CLEP Microeconomics exam hard?
It depends on what you already know. A few big areas decide most of your score: Firm behavior and market structure alone is 23–33% of the exam, while Theory of consumer choice is 5–10%. Take the free diagnostic above to see where you stand in about 10 minutes.
What kinds of questions are on the CLEP Microeconomics exam?
The guide sorts them into 5 types: “Shift the curve”, “Name the concept”, “Do the arithmetic”, “Read the graph in words” and “Policy effects”. Every question has 5 answer choices. Try the 10 free questions above to see the style.
How long should I study for CLEP Microeconomics?
Use the diagnostic to decide. If you already know most areas, two weeks of daily review is often enough; if the subject is new to you, plan on eight. The full guide has 2-, 4- and 8-week plans built from the exam weights.
How should I pace myself on the CLEP Microeconomics exam?
On average you have about 68 seconds per question (90 minutes for 80 questions). Be past question 27 a third of the way through and past question 53 two-thirds through. If a question takes more than a minute, pick your best guess, mark it and come back.
What happens if I don't pass CLEP Microeconomics?
You can retake a CLEP exam after three months. Use the wait to work through the areas the score report and the diagnostic show you missed.
Do colleges accept CLEP Microeconomics for credit?
CLEP exams are accepted at more than 2,900 U.S. colleges and universities, but each school decides which exams it accepts, the score it requires and the credit it gives. Look up your college's CLEP policy before you book.
How is the guide different from the CLEP Microeconomics course?
The guide is a 39-page PDF for review and self-testing. The CLEP Microeconomics course is a full online course with lessons, quizzes and a practice exam, for $19 with lifetime access. Many students use the guide first, then take the course for the areas the diagnostic flags.
How up to date is this CLEP Microeconomics guide?
Last updated 2026. The exam details were checked against the College Board's published exam information in 2026. Exams change, so confirm the details on the official exam page before you register.
What should I do the night before the exam?
Read the cram sheet once, slowly. Check your test time, the location or remote-proctoring setup, and the ID you need. Then sleep: a rested brain recalls more than a crammed one. In the morning, skim the memory tricks and common traps, then stop studying.
Is there a lot of math on CLEP Microeconomics?
Mostly arithmetic: elasticity ratios, marginal and average costs, and reading values off graphs and payoff matrices. No calculus is needed.
What market structures are on CLEP Microeconomics?
Perfect competition, monopoly (including price discrimination and natural monopoly), oligopoly (collusion, cartels and game theory) and monopolistic competition.
Does CLEP Microeconomics include game theory?
Yes, at an introductory level: reading a payoff matrix, finding dominant strategies and identifying a Nash equilibrium in oligopoly questions.
Choose how you want to study
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CLEP® is a registered trademark of the College Board, which was not involved in producing this guide and does not endorse it. TransferCredit.org is independent and not affiliated with the College Board. © 2026 UPI Globale Edu Inc.