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Weeks 1 and 2
Unit 1: Basic Economic Concepts (10% – 16% of the exam)
• Topic 1.1 Scarcity, choice, and opportunity costs
• Topic 1.2 Production possibilities curve
• Topic 1.3 Absolute advantage, comparative advantage, specialization, and trade
• Topic 1.4 Economic systems
• Topic 1.5 Property rights and the role of incentives (discussed in Unit 6)
• Topic 1.6 Marginal analysis
Weeks 1 and 2 link
Weeks 3 and 4
Unit 2: Supply and Demand (12% – 16% of the exam)
• Topic 2.1 Determinants of Supply and Demand
• Topic 2.2 Market Equilibrium
• Topic 2.3 Consumer surplus, producer surplus, and market efficiency
• Topic 2.4 Price and Quantity Controls
• Topic 2.5 Elasticity (demand elasticity, income and cross-price elasticities, and price elasticity of supply)
• Topic 3.1 Total Utility and Marginal Utility
• Topic 3.2 Utility Maximization: Equalizing Marginal Utility Per Dollar
• Topic 3.3 Individual and Market Demand Curves
• Topic 3.4 Income and Substitution Effects
Week 3 link
Week 4 link
Weeks 5 and 6
Unit 4: Production Costs, Revenue, and Profit (10% – 15% of the exam)
• Topic 4.1 Production Functions: Short and Long Run
• Topic 4.2 Marginal Product and Diminishing Returns
• Topic 4.3 Short-Run Costs
• fixed costs
• variable costs
• average costs
• marginal cost
• atotal costs
• Topic 4.4 Long-Run Costs and Economies of Scale
• Topic 4.5 Revenue vs. Profit
• accounting vs. economic profits
• normal profit
• profit maximization
• MR=MC rule
Weeks 5 and 6 link
Weeks 7 and 8
Unit 5: Perfect Competition (10% – 15% of the exam)
• Topic 5.1 Characteristics of different market structures
• Topic 5.2 Perfect Competition
• profit maximization
• short-run supply
• shut-down decision
• firm and market behaviors in short-run and long-run equilibria
• Topic 5.3 Efficiency and perfect competition
Weeks 7 and 8 link
Weeks 9 and 10
• Unit 6: Imperfect Competition (Monopoly, Oligopoly, Monopolistic Competition) (10% – 15% of the exam)
• Topic 6.1 Monopoly:
• Sources of market power
• Profit maximization
• Inefficiency of monopoly
• Price discrimination
•Natural monopoly
• Topic 6.2 Oligopoly:
• Interdependence, collusion, and cartels
• Game theory and strategic behavior with payoff matrix
• Dominant strategies and Nash equilibrium
• Topic 6.3 Monopolistic competition:
• Product differentiation and role of advertising
• Profit maximization
• Short-run and long-run equilibrium
• Excess capacity and inefficiency
Weeks 9 and 10 link
Week 11
Unit 7: Factors Market (6 – 12% of the exam)
• Topic 7.1 Derived Factor Demand
• Topic 7.2 Marginal Revenue Product
• Topic 7.3 Labor Market and Firms’ Hiring of Labor
Week 11 link
Weeks 12 and 13
Unit 8: Market Failure and the Role of Government (8 – 14% of the exam)
• Topic 8.1 Public and private goods
• Excludability, rivalry, and free-rider problem
• Provision of public goods
• Topic 8.2 Externalities
• Marginal social benefit and marginal social cost
• Positive externalities
• Negative externalities
• Remedies
• Topic 8.3 Public policy to promote competition
• Antitrust policy
• Regulation
• Topic 8.4 Income distribution
• Income inequality
• Lorenz curve and Gini coefficient
• Topic 8.5 World Trade + Tariff
Weeks 13 and 14 link
Weeks 14 and 15
Preparing and Reviewing for the Principles of Microeconomics CLEP Exam
Opening by November 1, 2026
Sample Exam -- 10 multiple choice questions link
Sample Exam -- 10 multiple choice questions link
Sample Exam -- 60 multiple choice questions link
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