Praxis II Economics Exam by ETS
The exam consists of 100 multiple choice questions and two hours will be provided to complete it. The exam is conducted for secondary school Economics instructors. It will test and judge your knowledge of theories, principles and concepts of economics i.e.. Macroeconomics and microeconomics. In the macroeconomics section your knowledge of economic growth, international investments and banking, fiscal polices, inflation, unemployment, national income accounting, the business cycle and the circular flow model will be analysed. In the microeconomics section your knowledge of income distribution, factor markets, production markets, product markets, production cost, market failures, market efficiency, trade, supply and demand, comparative advantage, scarcity, choice and opportunity costs and economic systems will be analysed.
In one form of the test 16 or 17 questions are used as a pre-test, such questions will not be counted, whereas the other 83 or 84 questions will be counted.
Microeconomics I: Scarcity, Choice and Opportunity Costs, Economic Systems, Comparative Advantage and Trade, Supply and Demand, Elasticity, Market Efficiency
This section will test your knowledge of efficiency markets, taxes and subsides, public policy, market failures, and the role of government regarding the economy. The elasticity section will include tax incidence, income and price elasticity and revenue. Your knowledge of the law of supply and demand, trade and comparative advantage, scarcity choice, opportunity and economic systems will also be analysed.
Microeconomics II: Production and Cost, Product Markets, Behavior of Firms, Income Distribution
This section will test your knowledge of production factors, pricing of goods, the labor market, wages, monopoly, oligopoly, antitrust laws, monopolistic competition, production, costs, profit and types of business organizations.
Macroeconomics I: Measures of Economic Performance, National Income Accounting, Unemployment, Inflation and Business Cycle
This section will test your knowledge of the consumer price index (CPI), inflation, unemployment and its impact on the economy overall, the National Income Accounting gross domestic product (GDP), alternative measurements of income and gross national product (GNP).
Macroeconomics II: National Income Determination, Fiscal Policy, Money and Banking, Monetary Policy, International Finance and Investment, and Economic Growth
This section will test knowledge of long run economic growth, international investments and finance, foreign exchange markets, monetary policy and open market operations, discount rates; the function of money, history of banking, Federal Reserve System, fiscal policy, budget deficits, budget surpluses, determination of national income, economic fluctuation and the business cycle.