CliffsAP Economics Micro & MacroMacroeconomics Test Concepts
The Macroeconomics exam covers five major areas; the numbers in the parenthesis indicate the approximate proportion
of the multiple-choice questions in each area. For example, 5-10% indicates there will be 3-6 questions on this topic.Basic Economic Concepts (5-10%)
Scarcity: the nature of Economic Systems
Opportunity Cost and Production Possibilities
Specialization and Comparative Advantage: the basis for international trade
The Functions of Economic Systems
Supply, Demand, Price Determination
Measurement of Economic Performance (8-12%)
Gross National Product, Gross Domestic Product, National Income
Inflation and Price Indexes
Unemployment
National Income and Price Determination (70-75%)
Aggregate Supply
Aggregate Demand
Money and Banking
Fiscal and Monetary Policy
Unemployment and Inflation Trade-Offs
Economic Growth (4-6%)
International Finance, Exchange Rates, and Balance of Payments (4-6%)Exam Insight
Each exam consists of two sections. Section I consists of 60 multiple-choice questions. Most of these questions are not
basic factual recall questions; rather, they demand an analytical processing of the material you already know. Section I
accounts for two-thirds of your final grade.Section II consists of three free-response questions (one long and two short). These analytical problem-solving ques-
tions involve several subject areas. Note that the essays do not require full paragraph explanations. Rather, each essay
should have a brief explanation and a graph to support the explanation. The long-response essay is scored at twice the
value of each of the shorter questions. Section II is one-third of your final grade.Scoring the Exam
The raw score for Section I is tabulated by taking the correctly answered number of questions, subtracting one-quarter
of a point for every incorrect response. If there is a question left blank, one-quarter point will not be deducted from
your score.If all 60 questions were answered and 50 were correct your raw score would be calculated as follows:Raw Score = # correct – (.25) (# incorrect)
= 50-1/4(10)
50-2.5 = 47.
= 47.Section II accounts for one-third of the overall grade. This section holds one long essay question and two short essay
questions each, with a different point value. Usually, the long question is worth 9-12 points, and each short question is
worth 4-6 points. No matter how many points each question is worth, the long essay question is worth half the value of
the whole section while the shorter questions account for one quarter of the section’s value.Evaluators are not only looking for a correct answer, they are also looking for the reasoning by which you arrived at the
answer. Make sure to explain your steps thoroughly and coherently.02 53999X Intro.qxd 1/23/04 10:16 AM Page 2