I’m just starting a 2nd pass through Econ and theres just so many bloody chapters of it, its pretty hard to retain it all. Elasticity is ok, but getting into the charts is kind of a chore…I’ve been using the Elan book, but it is still a lot of stuff. Any tips?
CFA is going to punish me cause I keep making such statements. But they are going to need a good lawyer cause I never say anything right out. When I took the CFA “mock” I did not see a single chart on it. if your smart you know what i meen.
I think charts and graphs help you understand the concept… i am not sure we need to actually know what kind of a graph accompanies what concept… personally, when I come across a toughie in econ, I try and graph the situation and then decide on the answer…
I could never fully understand graphs,especially the complicated ones with too many lines and arrows and what not.looked like a bunch of railways tracks near a big junction
I found the following method really helpful for econ: keep drawing the graphs, all of them, over and over again as well as draw them for changes in demand, supply, labour, whatever. once you understand the basic relationships on the graphs you will learn the concepts. for example, the monopoly MR/MC graph, there’s at least 4 or 5 different lines on that, go through it and draw it over and over, each line at a time, until you understand why everything fits together like it does. I know this seems trivial, but it’s very helpful. it helps when you can see how each piece fits together and is interrelated instead of looking at the finished product (the graph with all the lines). start from the simple demand and supply models and work your way up.
A picture is worth a thousand words learn the graphs and save yourself from memorizing the concepts.
I don’t recall that the actual exam had graphs, either. I think you have to remember how the concepts relate.
agree with the others - there are no charts but the concepts you have to know. look at the core concepts - average, marginal and total costs/revenues - and how they relate to each other.
My personal notes for economics: https://fileshare.aus.edu/pnp7/files/tvjuXWRRN/Economics.pdf Hope they gonna be helpful… As far as I remember, all the answers to questions in the “mock” exams were in this file … I did a good job in summarizing economics - I was impressed by the final outcome honestly lol Omar
I found the earlier sections of the Econ reading easier but as you start to go through the models for perfect competition, monopolistic competition, monopoly etc a lot of the theories start to blend together. I struggled with the aggregate demand/supply sections particularly in terms of differentiating between the impacts on LRAS, SRAS and AD. Not sure if anyone else is in the same boat. Just finished the section on monetary policy which in itself is not tough, though some of the reasoning around the supply/demand of money wasn’t terribly clear. Its tough - you try to balance really understanding the material with knowing YOU MUST read a certain # of pages a week to keep on track. Looking back over the Econ materiel I covered, some of it stuck and other details were gone as soon as I read them. I’m hoping that once I start my overall review in May things will start to click.
My advice would be:- For Micro:- - Know elasticity, which is as easy as it comes - Know the graphs relating to MP/AP and how they interact with MC (its one page - 3 graphs. If you understand it conceptually and can draw it, you are home and dry) - Know conceptually the difference between movement of a demand curve as opposed to movement along a demand curve - Know relationship between average variable, fixed and total cost All of the above can easily be knocked off in a 4-5 hours. know these and you are pretty much going to get 50% of the Econ right. 2 months out, I suspect I was in the same position as you. Get the above right (macro is easier - read the FT every day), and there is no reason why you can’t aim for top marks in this subject. Good luck.