This section is clearly going to be my downfall. How are you guys retaining the theories and what not?
drill more problems from question bank
I have an econ degree at my back. I haven’t given the section too much thought and I suspect (CFAI Mock, for example) it will be my best. I don’t know what advice to give except the above.
yeah been working eco for the last few nights, more like eco has been working me. I’ve pulled enough knowledge together to hope for a 50-70 range… what’s really helped me has been to draw out the charts and follow the movements in order. A lot of the theories don’t make sense when you read them! then you look at the graphs and get a small *AHA!* I finally understand why GDP doesn’t grow in the long-run, just price level. When I read “money demand is reduced with high interest rates” I literally yelled WHAT??? at the library but then I got that they mean cash demand… Review the questions you get wrong and look for patterns in the answers. For example, does one choice follow expansionary policy while the others are contractionary? chances are the one weird answer is the right one! The volume of info in Eco is SICK considering there will only be around 12 questions AM/PM for AN ENTIRE BOOK of material! love it.
another thing that sinks my stomach is all the little news stories in the CFAI textbook at the end of the chapters. they’re not *optional* but I sure treated them as such! I read about 5 of them…
Here’s a little tool that might help people memorize better AD and AS better… nothing fancy, but I like it. http://www.whitenova.com/thinkEconomics/adas.html At the bottom of the page, there’s a little interactive graph. I thought it was cool. I wish there was one like that for FRA. I would pay top dollars to get it.
remember things graphically is the best way in my opinion
Macro is a pain, but graphing is the only way to go. I suggest reviewing the graphs for the 4 micro markets, Monopoly, oligopoly, competition, monop. comp. There will definitely be qs from these, and remember elastic, inelastic. Price elasticity too is going to be on there.
Economics is my kryptonite, it’s terrible. I really don’t spend much time drawing out graphs but i’ve read the section twice solid in the last couple weeks and emptied tons of questions…I just can’t seem to bump it up to my acceptable levels…frustrating!!
pen and paper, just draw them out. understand what the pictures are saying. put it this way. if you can draw and interpret the graph, you can do that in an exam. i still can’t remember who bears the brunt of statutory taxes, but when you draw the diagram of the incidence of the tax, it is easy.