Changes

Several of our students in this class are starting a new homeschooling publication, which will soon be announced on ''Conservapedia.com'' and available online.  A student who took this class in 2007 and who is now excelling in college is publishing this observation:

Several of our students in this class are starting a new homeschooling publication, which will soon be announced on ''Conservapedia.com'' and available online.  A student who took this class in 2007 and who is now excelling in college is publishing this observation:

{{cquote|My microeconomics class has been almost all review for me, because of the similar class I took from Mr. Andy Schlafly ....  Although other students who attended public schools may have taken “economics” before, they have struggled with microeconomics this semester, because their high school classes completely ignored the free-market and Austrian economics<ref>"Austrian economics" is an approach to economics that emphasizes the free markets, minimizing governmental interference, respecting private property rights, and promoting gold as a monetary standard.  Austrian economics can be more libertarian than conservative on social issues, however, and it has been slow in incorporating new economic insights such as the Coase theorem.</ref> which are taught [in college].}}

{{cquote|My microeconomics class has been almost all review for me, because of the similar class I took from Mr. Andy Schlafly ....  Although other students who attended public schools may have taken “economics” before, they have struggled with microeconomics this semester, because their high school classes completely ignored the free-market and Austrian economics<ref>"Austrian economics" is an approach to economics that emphasizes the free markets, minimizing governmental interference, respecting private property rights, and promoting gold as a monetary standard.  Beware, however, that Austrian economics organizations are often more libertarian than conservative on social issues, and Austrian economics itself has been slow in incorporating new economic insights such as the Coase theorem.</ref> which are taught [in college].}}

Let's begin this lecture by summarizing the percentages the CLEP exam devoted to particular topics.  This will be immensely helpful to our students who will be taking the CLEP exam, and will also assist everyone else by facilitating their organization of the material covered in this course.  Our final exam next class will use a similar distribution in topics as the CLEP exam, but without over-emphasizing government policy as the CLEP exam does.  Instead of so many government questions, we will substitute in some of the additional topics we covered in this course.

Let's begin this lecture by summarizing the percentages the CLEP exam devoted to particular topics.  This will be immensely helpful to our students who will be taking the CLEP exam, and will also assist everyone else by facilitating their organization of the material covered in this course.  Our final exam next class will use a similar distribution in topics as the CLEP exam, but without over-emphasizing government policy as the CLEP exam does.  Instead of so many government questions, we will substitute in some of the additional topics we covered in this course.

The poverty-level income for a family of four in America: which of the following can be said about how the government definition of this specific income level?

The poverty-level income for a family of four in America: which of the following can be said about how the government definition of this specific income level?

:(A) It is used to determine eligibility for Social Security benefits.

:(A) It helps determine who is eligible for Social Security benefits.

:(B) It proves that 50% of Americans live in poverty.

:(B) It decreases when there is an increase in welfare benefits.

:(C) It falls when welfare benefits increase.

:(C) It proves that 50% of Americans live in poverty.

:(D) It is calculated by multiplying the cost of a nutritionally adequate diet by three.

:(D) It is determined by tripling the cost of a nutritionally adequate diet by three.

:(E) Government does not adjust this number due to changes in the cost of living (inflation).

:(E) Government does not adjust this number due to changes in the cost of living (inflation).

We can narrow the choices, and thereby reduce our risk of error, by eliminating wrong answers.  Basic economic principles (or common sense) serve as our guide.

We can narrow the choices, and thereby reduce our risk of error, by eliminating wrong answers.  Basic economic principles (or common sense) serve as our guide.

Let’s start with choice (B).  Think about it: is half of our nation living in poverty?  What would that mean for elections?  Who would pay to run government?  If we called half of us "poor", then what word would be use for the really poor?  Choice (B) can't be true.  Using common sense, we can eliminate this answer.

Let’s start with choice (C).  Think about it: is half of our nation living in poverty?  What would that mean for elections?  Who would pay to run government?  If we called half of us "poor", then what word would be use for the really poor?  Choice (C) can't be true.  Using common sense, we can eliminate this answer.

Let’s turn to choice (E).  Why wouldn’t it be adjusted?  Poverty must be relative to the cost of living.  If the cost of living doubled, then the numbers in poverty would increase greatly.  But failure to adjust for the cost of living would miss that effect.  Again, common sense leads us to eliminate this answer.

Let’s turn to choice (E).  Why wouldn’t it be adjusted?  Poverty must be relative to the cost of living.  If the cost of living doubled, then the numbers in poverty would increase greatly.  But failure to adjust for the cost of living would miss that effect.  Again, common sense leads us to eliminate this answer.

<>Next we can turn to choice (A): “It is used to determine eligibility for Social Security benefits.” That cannot be true: virtually everyone must pay Social Security taxes, and then receive benefits when they become old.  All politicians, rich or poor, defend Social Security.   “Social security” is not “security only if you’re poor.”  We can eliminate this choice.

Next we can turn to choice (A).  That doesn't work either, because everyone who pays into Social Security has a right to receive benefits when they grow old, regardless of whether they are rich or poor. “Social security” is not “security only if you’re poor.”  We can eliminate this choice.

We’re left with only two possibilities: (C) and (D).  Now our odds are 50% even if we just guess.  If you took the CLEP and at least narrowed every difficult question down to two choices, then you would likely pass.  But can we do better than a blind guess between these two choices?

We’re left with only two possibilities: (B) and (D).  Realize that has increased our odds of choosing the right answer to 50% now.  If you took the CLEP and at least narrowed every difficult question down to two choices, then you would likely pass the test.  How do we next make our best choice among these final two options?

Perhaps.  Option (D) seems to have the right amount of detail, and fits the question well grammatically.  “The official measure of the poverty-level income ... is calculated by multiplying the cost of a nutritionally adequate diet by three.”  Option (C) does not fit the question so well: “The official measure of the poverty-level income ... falls when welfare benefits increase.”  A “measure” “falls”?  No, a “measure” “is calculated.” Even if you had no idea between (C) and (D), (D) is better grammatically and logically.  It’s an educated guess.  (D), indeed, is correct.

Option (D) seems to have the right amount of detail, and fits the question well grammatically.  In contrast, Option (B) does not fit the question as well or make as much sense (definition of what the poverty level is should not change based on distributing some benefits).  Even if you had no idea between (B) and (D), (D) is a better fit.  It’s our best guess.  (D), indeed, is correct.

It also helps to think about the purpose of a question.  These are not trick questions, and you do not want to outsmart yourself.  Don’t be too cute in eliminating wrong answers.  Don’t reach for the answer that you least expected initially.  The purpose of this question is to ask about how poverty-level income is calculated.  Answer (D) most directly relates to that purpose.  It makes for a good guess if you did not otherwise know.  You won’t always be able to guess the right answers, but by increasing your chances you can significantly increase your overall score.

It helps to choose an answer that gives the most meaning to the purpose of the question.  The purpose of this question is to ask about how poverty-level income is calculated.  Answer (D) most directly furthers that goal.  It makes for a good guess if you did not otherwise know.  You won’t always be able to guess the right answers, but by increasing your chances you can significantly increase your overall score.

Let’s try one more real CLEP question, this time relating to labor:

Let’s try one more real CLEP question, this time relating to labor:

Assume that both input and product markets are competitive.  If capital is fixed and the product price increases, in the short run firms will increase production by increasing:

<>Assume that both input and product markets are competitive.  If capital is fixed and the product price increases, in the short run firms will increase production by increasing:

(A) capital until marginal revenue equals the product price

(A) capital until marginal revenue equals the product price