Everything you need to pass the exam and get the college credit you deserve.
CLEP® is the most popular credit-by-examination program in the country, accepted by more than 2,900 colleges and universities. For over 15 years, REA has helped students pass the CLEP® exam and earn college credit while reducing their tuition costs.
Our CLEP® test preps are perfect for adults returning to college (or attending for the first time), military service members, high-school graduates looking to earn college credit, or home-schooled students with knowledge that can translate into college credit.
There are many different ways to prepare for the CLEP® exam. What's best for you depends on how much time you have to study and how comfortable you are with the subject matter. Our test prep for CLEP® Principles of Microeconomics and the free online tools that come with it, will allow you to create a personalized CLEP® study plan that can be customized to fit you: your schedule, your learning style, and your current level of knowledge.
Here's how it works:
Diagnostic exam at the REA Study Center focuses your study
Our online diagnostic exam pinpoints your strengths and shows you exactly where you need to focus your study. Armed with this information, you can personalize your prep and review where you need it the most.
Most complete subject review for CLEP® Principles of Microeconomics
Our targeted review covers all the material you'll be expected to know for the exam and includes a glossary of must-know terms.
Two full-length practice exams
The online REA Study Center gives you two full-length practice tests and the most powerful scoring analysis and diagnostic tools available today. Instant score reports help you zero in on the CLEP® Principles of Microeconomics topics that give you trouble now and show you how to arrive at the correct answer-so you'll be prepared on test day.
REA is the acknowledged leader in CLEP® preparation, with the most extensive library of CLEP® titles available. Our test preps for CLEP® exams help you earn valuable college credit, save on tuition, and get a head start on your college degree.
About the Author
In 2005, under Mr. Sattora’s direction, Pittsford Mendon High School’s Federal Reserve Challenge Team won the Fed Challenge national championship. Recently, Mr. Sattora designed an Economic Education Institute blueprint for the Federal Reserve Bank of New York. A graduate of Canisius College, he holds an M.S. degree from Nazareth College.
Read an Excerpt
Passing the CLEP Principles of Microeconomics ExamCongratulations! You’re joining the millions of people who have discovered the value and educational advantage offered by the College Board’s College-Level Examination Program, or CLEP. This test prep covers everything you need to know about the CLEP Microeconomics exam, and will help you earn the college credit you deserve while reducing your tuition costs.GETTING STARTED
There are many different ways to prepare for a CLEP exam. What’s best for you depends on how much time you have to study and how comfortable you are with the subject matter. To score your highest, you need a system that can be customized to fit you: your schedule, your learning style, and your current level of knowledge.
This book, and the online tools that come with it, allow you to create a personalized study plan through three simple steps: assessment of your knowledge, targeted review of exam content, and reinforcement in the areas where you need the most help. Let’s get started and see how this system works.Test Yourself & Get Feedback
Score reports from your online diagnostic and practice tests give you a fast way to pinpoint what you already know and where you need to spend more time studying.Review with the Book
Study the topics tested on the CLEP exam. Targeted review chapters cover everything you need to know.Improve Your Score
Armed with your score reports, you can personalize your study plan. Review the parts of the book where you’re weakest and study the answer explanations for the test questions you answered incorrectly.THE REA STUDY CENTER
The best way to personalize your study plan and focus on your weaknesses is to get feedback on what you know and what you don’t know. At the online REA Study Center, you can access two types of assessment: a diagnostic exam and full-length practice exams. Each of these tools provides true-to-format questions and delivers a detailed score report that follows the topics set by the College Board.Diagnostic Exam
Before you begin your review with the book, take the online diagnostic exam. Use your score report to help evaluate your overall understanding of the subject, so you can focus your study on the topics where you need the most review.Full-length Practice Exams
These practice tests give you the most complete picture of your strengths and weaknesses. After you’ve finished reviewing with the book, test what you’ve learned by taking the first of the two online practice exams. Review your score report, then go back and study any topics you missed. Take the final practice test to ensure you have mastered the material and are ready for test day.If you’re studying and don’t have Internet access, you can take the printed tests in the book. These are the same practice tests offered at the REA Study Center, but without the added benefits of timed testing conditions and diagnostic score reports. Because the actual exam is computer-based, we recommend you take at least one practice test online to simulate test-day conditions.AN OVERVIEW OF THE EXAM
The CLEP Principles of Microeconomics exam covers the material one would find in a college-level introductory microeconomics class. The exam requires the test-taker to analyze and evaluate economic decisions, demonstrate an understanding of how free markets work, and understand how individual consumers and firms make economic decisions.The exam consists of 80 multiple-choice questions, each with five possible answer choices, to be answered in 90 minutes.The approximate breakdown of topics is as follows:8–12% Basic economic concepts60–70% The nature and function of the product market10–15% Factor Market4–6% Market failures and the role of governmentALL ABOUT THE CLEP PROGRAM
What is the CLEP?
CLEP is the most widely accepted credit-by-examination program in North America. CLEP exams are now available in 33 subjects and test the material commonly required in an introductory-level college course. Examinees can earn from three to twelve credits at more than 2,900 colleges and universities in the U.S. and Canada. For a complete list of the CLEP subject examinations offered, visit the College Board website: www.collegeboard.org/clep.Who takes CLEP exams?
CLEP exams are typically taken by people who have acquired knowledge outside the classroom and who wish to bypass certain college courses and earn college credit. The CLEP program is designed to reward examinees for learning—no matter where or how that knowledge was acquired.Although most CLEP examinees are adults returning to college, many graduating high school seniors, enrolled college students, military personnel, veterans, and international students take CLEP exams to earn college credit or to demonstrate their ability to perform at the college level. There are no prerequisites, such as age or educational status, for taking CLEP examinations. However, because policies on granting credits vary among colleges, you should contact the particular institution from which you wish to receive CLEP credit.Who administers the exam?
CLEP exams are developed by the College Board, administered by Educational Testing Service (ETS), and involve the assistance of educators from throughout the United States. The test development process is designed and implemented to ensure that the content and difficulty level of the test are appropriate.When and where is the exam given?
CLEP exams are administered year-round at more than 1,200 test centers in the United States and can be arranged for candidates abroad on request. To find the test center nearest you and to register for the exam, contact the CLEP Program:CLEP Services
P.O. Box 6600
Princeton, NJ 08541-6600
Phone: (800) 257-9558 (8 a.m. to 6 p.m. ET)
Fax: (609) 771-7088
Website: www.collegeboard.org/clepOPTIONS FOR MILITARY PERSONNEL AND VETERANS
CLEP exams are available free of charge to eligible military personnel and eligible civilian employees. All the CLEP exams are available at test centers on college campuses and military bases. Contact your Educational Services Officer or Navy College Education Specialist for more information. Visit the DANTES or College Board websites for details about CLEP opportunities for military personnel.Eligible U.S. veterans can claim reimbursement for CLEP exams and administration fees pursuant to provisions of the Veterans Benefits Improvement Act of 2004. For details on eligibility and submitting a claim for reimbursement, visit the U.S. Department of Veterans Affairs website at www.gibill.va.gov/pamphlets/testing.htm.CLEP can be used in conjunction with the Post-9/11 GI Bill, which applies to veterans returning from the Iraq and Afghanistan theaters of operation. Because the GI Bill provides tuition for up to 36 months, earning college credits with CLEP exams expedites academic progress and degree completion within the funded timeframe.SSD ACCOMMODATIONS FOR CANDIDATES WITH DISABILITIES
Many test candidates qualify for extra time to take the CLEP exams, but you must make these arrangements in advance. For information, contact:College Board Services for Students with Disabilities
P.O. Box 6226
Princeton, NJ 08541-6226
Phone: (609) 771-7137 (Monday through Friday, 8 a.m. to 6 p.m. ET)
TTY: (609) 882-4118
Fax: (609) 771-7944
Table of Contents
About the Author
About Research & Education Association
Chapter 1 Passing the CLEP Principles of Microeconomics Exam
The REA Study Center
An Overview of the Exam
All About the CLEP Program
Options for Military Personnel and Veterans
SSD Accommodations for Candidates with Disabilities
6-Week Study Plan
The Day of the Exam
Online Diagnostic Test
Chapter 2 Basic Economic Concepts Review
Origins of Supply
Origins of Demand
The Nature and Function of Product Markets
Circular Flow Model
Chapter 3 CLEP Microeconomics Course Review
The Nature and Function of Product Markets
Interaction of Supply and Demand
Price Elasticity of Demand
The Total Revenue Test
Cross Elasticity of Demand
Price Elasticity of Supply
Income Constraints and Budget Limits
Opportunity (Economic) Cost
Producer Time Constraints
Short-Run Production Costs
Long-Run Costs of Production
Four Production Market Models
Pricing and Employment of Factor Markets
Marginal Resource Productivity Theory
The Labor Market and Wages
Efficiency, Equity, and the Role of Government
Main Government Intervention Methods
Income Equality and Poverty
Practice Test 1
Detailed Explanations of Answers
Practice Test 2
Detailed Explanations of Answers