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| | ==Final Tips on Test-taking in Economics== | | ==Final Tips on Test-taking in Economics== |
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| − | Good test-taking techniques are particularly important to doing well on an economics exam. Simple questions are often intentionally disguised as something more complicated. It is easy to become confused and misguided in analyzing economic issues. 99% of the public would say that we would be better off if Congress put a price ceiling or cap on gasoline at $1.50 a gallon. It takes a bit more thought to realize that massive shortages would result, and we would all have to waste hours each week waiting in line for gasoline. Some who really need gas in hurry, such as people trying to take someone to a hospital, may not be able to obtain gas in time. | + | Good test-taking techniques are particularly important to doing well on an economics exam. Simple questions are often intentionally disguised as something more complicated. It is easy to become confused and misguided in analyzing economic issues. 99% of the public would say that we would be better off if Congress put a price ceiling or cap on gasoline at $1 a gallon. It takes a bit more thought to realize that massive shortages would result, and we would all have to waste hours each week waiting in line for gasoline. Some who really need gas in hurry, such as people trying to take someone to a hospital, may not be able to obtain gas in time. |
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| − | The ability to eliminate wrong answers can help. Let’s try the elimination technique using questions based CLEP questions: | + | The ability to eliminate wrong answers can help. Let’s try the elimination technique on these questions: |
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| − | 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?
| + | ''Question'': Consider the poverty-level of income for a family of four in America. Which of the following can be said about ''how'' the government defines this specific income level? |
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| | :(A) It helps determine who is eligible for Social Security benefits. | | :(A) It helps determine who is eligible for Social Security benefits. |
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| | 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. | | 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. |
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| − | Let’s try one more real CLEP question, this time relating to labor: | + | Let’s try one more CLEP-inspired question, this time relating to labor: |
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| − | <>Assume a perfectly competitive market for both inputs and output. If capital is fixed and the price for the output increases, then a firm in the short run will increase its production by which of the following ways:
| + | ''Question'': Assume a perfectly competitive market for both inputs and output. If capital is fixed and the price for the output increases, then a firm in the short run will increase its production by which of the following ways: |
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| | :(A) increase capital until P=MR | | :(A) increase capital until P=MR |
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| | (B) and (D) look similar so let’s turn to (E) first. The “marginal product of labor” is the additional units (“product”) produced due to an additional unit of labor. Remember “MP”? The term does not include “revenue” or “price”, so it only gives you the quantity. We need to multiply that quantity by product price to obtain revenue, what the firm owner cares the most about. Choice (E) makes no sense by dividing terms that should be multiplied together. We can eliminate it. | | (B) and (D) look similar so let’s turn to (E) first. The “marginal product of labor” is the additional units (“product”) produced due to an additional unit of labor. Remember “MP”? The term does not include “revenue” or “price”, so it only gives you the quantity. We need to multiply that quantity by product price to obtain revenue, what the firm owner cares the most about. Choice (E) makes no sense by dividing terms that should be multiplied together. We can eliminate it. |
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| − | Back to (B) and (D). The only difference between the two is the term “value of” in (B). Should we go for it? Think about what “marginal product” is. It is a quantity, not a dollar amount. Yet we are comparing it to “wage rate,” which would be in dollars. We need to insert “value of” to convert a quantity into equivalent dollars. (B) is must be the correct choice because it compares dollars to dollars, while choice (D) does not. | + | Back to (B) and (D). The only difference between the two is the term “value of” in (B). Think about what “marginal product” is. It is a quantity, not a dollar amount. Yet we are comparing it to “wage rate,” which would be in dollars. We need to insert “value of” to convert a quantity into equivalent dollars. (B) is must be the correct choice because it compares dollars to dollars, while choice (D) does not. |
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| | The key to good test-taking, particularly on economics exams, is to make sure you fully understand each question before trying to answer it. | | The key to good test-taking, particularly on economics exams, is to make sure you fully understand each question before trying to answer it. |