How to Pass Examinations in Economics(*0) George J. Stigler From "The Intellectural and the Marketplace" Students always display a powerful, not to say unhealthy, interest in how to answer questions on examinations in economics. Thay can do fairly well with the essay, or subjectivem questions, but they do not seem at home with the true-false, or objective, questions. And yet the latter questions are very easy. I shall illustrate the proper techniques by using questions bfrom the Students Manual to Accompany the Elements of Economics by Lorie Tarshis, able students will discover that the appendix to the manual gives the answer to the true-false questions (which are called comprehension tests); so it will save time if I reproduce the answer with the question. It is very important that the student gain self-confidence, so I shall begin with a simple example: 9. Taxes constitute a part of fixed costs. (Answer: F)(*2) The indicated answer is F is, of course, T. It is important to note that this answer has a very general validity－for example: 9a. Taxes do not constitute a part fixed cost. (Answer: F) 9b. Taxes constitute a part of variable costs. (Answer: F) 9c. Taxes do not constitute a part of variable costs. (Answer: F) Every cost, it must be remembered, is fixed or variable, and not both simultaneously. A tax is a cost. But some taxes vary with output and some do not, and the statement refers to taxes in the plural. This means that perhaps both fixed and variable taxes are being referred to. Hence, the statement is partly right, part of the time, and therefore false. Lesson 1: A Statement That Can Be False is False *0: This ancient piece is included only because careless students may be thus enticed to buy this volume. *1: Ibid., p. 17. F means fantastic. --

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