Tips for Taking Exams

Glen Whitman
The purpose of this document is to give students useful tips for taking exams. Some tips
are useful for almost any professors exams, while others are useful only for my own.
Multiple Choice Questions
The following tips are helpful for taking almost any multiple choice exam (not just mine).
1. Use the process of elimination: cross out answers you know are incorrect, then focus
on the remaining answers.
2. Look for the best answer to the question, not just any answer that seems correct.
3. Pay special attention to words like not, sometimes, always, and never.

An always statement can be refuted by a single counterexample. (The statement

Marginal cost is always increasing is false if you can find a single good or
service whose marginal cost of production is constant or decreasing.)
A never statement can be refuted buy a single counterexample. (The statement
Demand curves never slope upwards is false if you can find a single good or
service whose demand curve slopes upward.)

4. Dont waste too much time on a question youre having problems with.
5. Its better to guess than not to answer the question at all. (Exception: There are some
standardized tests that penalize you for giving incorrect answers. For those tests, you
should only guess if you can eliminate at least one incorrect answer. But for most
multiple choice tests, including mine, its always better to guess than not to answer.)
In addition to these standard tips, heres something you should know about my multiple
choice exams: I almost always include the most common wrong answer in the choices.
Example: To find the profit-maximizing output for a firm, you need to set
marginal cost (MC) equal to marginal revenue (MR). But many students
mistakenly set MC equal to the demand curve instead. So I will almost always
include the answer that results from making that mistake.
Example: Students often confuse Giffen goods and inferior goods. So when one
of these is the correct answer, I will almost always include the other as well.
What does that mean? You shouldnt assume your first answer is correct just because you
found it among the choices.

Short Answer Questions

My exams nearly always include short-answer questions. Here are some tips on how to
answer this kind of question on my exams. Note that other professors have different
ideas about how short-answer questions should be answered.
1. When I call a question short answer, I really mean it: the correct answer is short.
Most short answer questions can be answered in a couple of sentences. Many of them
can be answered with just a word or phrase, a short numerical answer, or (occasionally) a
simple graph.
2. An answer thats longer than necessary wont cause you to lose points, as long as
everything you write is correct. But if your extra statements are incorrect, I will deduct
points. In addition, writing more than necessary wastes time that could be spent on other
questions. So you should only write more if you think its more likely to gain you points
(because its correct and crucial to answering the question) than to lose you points
(because its incorrect).
3. There are six basic types of short-answer question:

Definition questions. For these questions, you simply need to define a concept.
o Example: What is a demand curve? Answer: It is a curve that shows
the quantity demanded of a particular good or service at many different
prices.
Explanation questions. For these questions, you need to explain why something is
true or how something works.
o Example: Why is the demand curve downward-sloping for most goods?
Answer: Because as the price of a good falls, people tend to buy more of
it. When the price is lower, buying the good involves a smaller sacrifice in
terms of other goods.
Example questions. For these questions, you need to state one or more specific,
real-world instances of some concept.
o Example: Give two examples of pairs of goods that are complements.
Answer: Cameras and camera film. Peanut butter and jelly.
Relationship questions. For these questions, you need to state how two or more
things relate to each other. Are they opposites? Are they the same thing? Is one
an example of the other? How do they differ? Etc. These are usually the most
difficult questions.
o Example: In a competitive market economy, what is the relationship
between prices and scarcity? Answer: Prices usually reflect scarcity
directly. More scarce commodities have higher prices, while less scarce
commodities have lower prices.
o Example: What is the difference between demand and quantity
demanded? Answer: Quantity demanded is the amount of a good
consumers will buy at a specific price, whereas demand shows the
quantities demanded for many different prices.

Calculation questions. For these questions, you need to calculate a numerical

answer or answers.
o Example: If the demand for boxes of cereal is given by P = 100 0.1Qd,
and the supply is given by P = 20 + 0.1Qs, what is the market equilibrium
price and quantity? Answer: Q* = 400, P* = 60.
Graphing questions. For these questions, you need to respond with a simple
graph. Make sure you clearly label your axes and curves. Unless the question
specifically asks for an explanation, no explanation is necessary!
o Example: Draw a diagram of a market with an effective price ceiling
below the market price. Mark the resulting shortage.

4. Make sure you know what kind of question (see #3 above) youre answering! Many
students lose points by giving the wrong kind of answer.

If its a definition question, dont give an example instead.

o Example: What is meant by economies of scale? Bad answer:
Economies of scale is like when Ford Motors came up with the idea of
assembly-line production of automobiles. Good answer: Economies of
scale is when the long-run average cost of production falls as output
rises.
If its an example question, dont give a definition instead.
o Example: Give an example of substitute goods. Bad answer: A
substitute good is one that youll buy more of when the price of a similar
good goes up. Good answer: Butter and margarine.
If its an explanation question, dont give a definition or an example.
o Example: Why do economies of scale occur? Bad answer:
Economies of scale occur when the average cost of production goes
down as output goes up. [This is a correct description of economies of
scale, but it doesnt say why the average cost goes down as output goes
up.] Another bad answer: Economies of scale happens because you can
make more cars for cheaper by having an assembly line. [This answer is
too specific, because economies of scale is a concept that applies to more

than just cars.] Good answer: Economies of scale usually occur because
firms can make use of mass production techniques that involve greater
specialization of both labor and capital.
If its relationship question, dont just give two definitions (unless the wording of
the definitions makes the relationship obvious).
o Example: For most goods, what is the relationship between price and
quantity demanded? Bad answer: Price is the amount of money you
have to pay for the good. Quantity demanded is how much you buy.
Good answer: As the price of a good rises, quantity demanded tends to
fall.

The point is, its not enough to say something correct. You also have to say something
that directly answers the question asked.
5. Make sure you answer all parts of the question.

Example: If the question asks for a firms profit-maximizing quantity and price,
and you calculate the quantity first, dont forget the calculate the price as well.
Example: If the question asks for two examples of price discrimination, dont put
down only one (unless you just cant think of another).

6. Notwithstanding anything Ive said above, its always better to say something than
nothing. If its a definition question but all you can think of is an example, then give the
example. If its an explanation question but all you can think of is the definition, then
give the definition. You wont get full credit, but you might get partial credit.
Essay Questions
Professors differ in their preferences about essay questions, but most (including me)
would agree on the following advice:
1. Plan your essay in advance. Come up with a simple outline. Think about whether the
planned orders of your points makes sense.
2. Have multiple paragraphs, not just one long paragraph. Each paragraph should cover
a distinct aspect of the topic.
3. Have an introductory paragraph. This paragraph should introduce the topic, define
key terms that will be used throughout the essay, and (preferably) briefly forecast the
structure of the essay.
4. Use concrete examples to support your points, if possible. Dont just put all your
examples in a paragraph at the end use your examples along the way.
5. Have a concluding paragraph that summarizes your main points.

6. A good essay will usually include definitions, explanations, examples, and

relationships. (Refer to the discussion of short-answer questions, above, for more about
these categories.)
7. Graphs may be used in essay questions, but you need to explain their meaning and
significance in words.
8. If youre short on time, quickly outline the points you planned to make. This will not
get you full credit, but its better than nothing.