EXAMS: The Long and Short Run

EXAMS: The Long and Short Run

by Linda, Rudmila, Taniko, Xueqing

After getting done with this second midterm, we all started thinking a little bit about the long run and short run of things and its implication on our day to day lifestyles. Hence we decided to take a deeper look into the long and short run of Exams in this Microeconomics theory class.

We can assume that the entire length of the semester can be divided up as the following:

Beginning of semester – Midterm 1: Short run 1

Midterm 1- Midterm 2: Short run 2

Beginning of semester – Finals: Long run

Additionally, we also assume that our fixed ‘knowledge’ are the pre-requisites of Calculus and Introductory Microeconomics theory and our variable ‘knowlegde’ is what we acquire during the course of the semester.

During the first time period, i.e short run 1, things are pretty straightforward. We are only concerned about the eminent exam, which is Midterm 1. The thought of the long run doesn’t prevail in our brains since we do not know enough of the materials to be thinking of the long run.

During the second time period, i.e short run 2, we find ourselves in a tricky position. Here the eminent exam is Midterm 2. Since this exam is not cumulative, students often tend to focus more on the materials covered after Midterm 1, even though the concepts from the first midterm are carried over to the second midterm.

As a result, when we finally reach the last time period, i.e from the beginning of the semester to the Final exams, we are in a big mess. All that is fresh in our memories are materials that we covered in the second midterm. The first midterm materials are long forgotten. So we either decide to cram our brains out and study 20 hours a day, or we decide to go along with the things we already know and sort of bluff through the parts we forgot.

Neither of these are optimal solutions to this very common problem. We need to start thinking about the long run as soon as we have enough ‘resources’. Instead of solely focusing on recent materials for Midterm 2, we need to find some time to go over the materials from Midterm 1 so that when it’s time for the cumulative Final exam, we can still breathe.

In the short runs, we want a positive profit, aka positive grades. This will allow us to have a higher total average grade in the long run. This is very important because not having a positive grade in the short run might lead to ‘exiting the market’ aka dropping the course (in an extreme example of course).

Hence we need to plan ourselves accordingly and make the most of all the exams since that is the only way we can have a satisfactory outcome from the course.