Course

Course Summary
Credit Type:
Exam
ACE ID:
CLEP-0030
Dates Offered:
Credit Recommendation & Competencies
Level Credits (SH) Subject
Lower-Division Baccalaureate 3 Microeconomics
Credit is recommended for candidates scoring 50 and above.
Description

Objective:

The Principles of Microeconomics examination covers material that is usually taught in a one-semester undergraduate course in introductory microeconomics, dealing with the principles of economics that apply to the analysis of the behavior of individual consumers and businesses in the economy. Questions on this exam require candidates to apply analytical techniques to hypothetical as well as real-world situations and to analyze and evaluate economic decisions. Candidates are expected to demonstrate an understanding of how free markets work and allocate resources efficiently. They should understand how individual consumers make economic decisions to maximize utility, and how individual firms make decisions to maximize profits. Candidates must be able to identify the characteristics of the different market structures and analyze the behavior of firms in terms of price and output decisions. They should also be able to evaluate the outcome in each market structure with respect to economic efficiency, identify cases in which private markets fail to allocate resources efficiently, and explain how government intervention fixes or fails to fix the resource allocation problem. It is also important to understand the determination of wages and other input prices in factor markets, and analyze and evaluate the distribution of income.

Skills Measured:

The skills measured include 8 - 14 percent: basic economic concepts; 55 - 70 percent: the nature and functions of product markets (including - 15 percent: supply and demand; 5 - 10 percent: theory of consumer choice; 10 - 15 percent: production and costs; 23 - 33 percent: firm behavior and market structure); 8 - 14 percent: factor markets; and 10 - 16 percent: market failure and the role of government.
Instruction & Assessment
Supplemental Materials

Other offerings from College Board's College-Level Examination Program (CLEP)

(CLEP-0007)
(CLEP-0010)
(CLEP-0018)
(CLEP-0038)
(CLEP-0019)
(CLEP-0013)
(CLEP-0040)
(CLEP-0004)