can be awarded. If the question asks you to “identify” something, you may need only
one word or a short phrase to receive all of the points. Writing a paragraph here will
only waste your time. As mentioned, any reference to “illustrate” will require you to
draw, or redraw, a graph to receive points. If the question asks you to “define” a con-
cept, you will need to devote more time to providing your best definition of that con-
cept. If you are prompted to “indicate” something, you must simply state what is
expected to happen. For example, suppose you are told that a price floor has been
installed in the market for soybeans and you are asked to indicate what will happen to
deadweight loss. All you need to do to earn the point is to indicate that deadweight loss
will increase. You may also get the point if you clearly indicate, preferably with an
arrow, in a graph of the money market that interest rates are rising. The most time-
intensive prompt is usually one that involves “explain.” Suppose you are told that the
government has eliminated the minimum wage. Then you are asked to explain how this
will affect wages and employment in these labor markets. To give yourself the best
chance at receiving all of the points, your response must provide two parts. First, give
a clear statement of what exactly will happen; second, explain why it is going to
happen.Here are some other things to keep in mind:- The free-response section begins with a 10-minute reading period. Use this time well
to jot down some quick notes to yourself so that when you actually begin to respond,
you will have a nice start. - The first parts of the free-response questions are the easiest parts. Spend just enough
time to get these points before moving on to the more difficult sections. - The questions are written in logical order. If you find yourself explaining Part C
before responding to Part B, back up and work through the logical progression of
topics. - Abbreviations are your friends. You can save time by using commonly accepted
abbreviations for economic variables and graphical curves, and you will get more
adept at their use as your mastery improves. For example, in macroeconomics you
can save some time by using “OMO” rather than “open market operation,” and in
microeconomics you can use “MRP” rather than “marginal revenue product.”
38 › Step 3. Develop Strategies for Success
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