Key Economics Exam Success Tips

The single most important rule to pass your economics exam is that firms always maximize

profit where marginal revenue equals marginal cost. If you forget MR equals MC,

you are basically guessing. Remember that trade isn't about being the absolute best

at something, it is about having the lowest opportunity cost. That is comparative

advantage. Also, realize that there is no such thing as a free lunch

because every choice you make costs you the next best alternative. Finally, taxes kill efficiency

by creating deadweight loss, so keep your curves elastic. Nail these concepts

and you ace the test.