Take a quick CLEP sample test with our FREE CLEP practice sample questions! These are a quick preview of what kind of information you'll be studying in our CLEP Study Guide for this subject. You can also use these CLEP sample test questions to gauge how ready you are to take your CLEP test. How do you know when you are ready? A good way to tell is when you can flip open our CLEP study guide, put your finger on a page, any page, and be able to define and explain what it is you're pointing out. That takes effort. Studying for a CLEP test does take effort, but based on your previous and current experience, there may be CLEP tests that you can take with little or no study. Taking a practice CLEP test can tell you if you are ready, it can give you an idea of the content of the CLEP test, it can tell you how difficult or easy your CLEP test will be.
Still learning about CLEP tests or you need more information than just a CLEP sample test? Visit our New Student Center to get a great overview of where to start.
Microeconomics CLEP Practice Test
1) When a surplus exists in the market it means
A) The price is below the equilibrium
B) The price is above the equilibrium
C) The price is at the equilibrium
D) The quantity is at the equilibrium
E) The quantity is below the equilibrium
2) The Law of Supply stares that
A) As prices increase, demand decreases
B) As prices increase, demand increases
C) As prices increase, demand remains the same
D) As prices decrease, demand decreases
E) As prices decrease, demand remains the same
3) If the elasticity of demand is greater than 1, then a 5% reduction in price will result in
A) No change of the quantity demanded
B) An increase of 2 1/2% in the quantity demanded
C) An increase of 5% in the quantity demanded
D) An increase of more than 5% in the quantity demanded
E) A decrease of more than 5% in the quantity demanded
4) The industry demand curve has
A) Less slope than government demand curves
B) Less slope than individual demand curves
C) Equal slope as individual demand curves
D) More slope than individual demand curves
E) More slope than government demand curves
5) Unemployment is prevalent during
A) Boom
B) Depression
C) War
D) Growth
E) Post-war
6) A moderate rate of inflation, such as 35% per annum
A) Hurts people living on fixed incomes
B) Helps people living on fixed incomes
C) Results in no changes
D) Improves credit scores
E) None of the above
7) Gresham’s law says that
A) All money is bad
B) Money is the root of all evil
C) Bad money drives out the good
D) Money will not make you happy
E) None of the above
8) To be effective, a perfectly competitive market needs
A) Some benefits of the good to go to its consumers
B) All benefits of the good to go to its consumers
C) Market diversification
D) Benefits in society
E) None of the above
9) A monopoly has
A) Problems impacting consumption
B) Increases in labor activity
C) Allocative and technical inefficiency
D) Tolerable competition levels
E) None of the above
10) ________ is total cost divided by quantity.
A) Marginal costt
B) Average total cost
C) Fixed cost
D) Variable cost
E) None of the above

Need more practice?
Our Principles of Microeconomics CLEP Study guide has 90 MORE test questions to help you get ready for the test!
CLEP Practice Test Answer Key:
- B:) The price is above the equilibrium.
- A:) As prices increase, demand decreases. The Law of Supply states that as the price of a certain good increases, the demand for that good or service diminishes.
- D:) An increase of more than 5% in the quantity demanded.
- B:) Less slope than individual demand curves.
- B:) Depression.
- A:) Hurts people living on fixed incomes. When inflation rises, most of the people living on fixed incomes do not receive a cost of living increase or adjustment and are then able to buy less with the same amount of money.
- C:) Bad money drives out the good.
- B:) All benefits of the good to go to its consumers.
- C:) Allocative and technical inefficiency.
- B:) Average total cost.