CFA Level 1 - Economics – AlphaBetaPrep

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Study Session 4: Economics (1)

Reading 12 Topics in Demand and Supply Analysis 6 LOSs | 3 Quizzes

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Reading Content

0% Complete 0/6 Steps

Calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure

Compare substitution and income effects

Distinguish between normal goods and inferior goods;

Describe the phenomenon of diminishing marginal returns

Determine and interpret breakeven and shutdown points of production

Describe how economies of scale and diseconomies of scale affect costs

Reading 12 Topics in Demand and Supply Analysis – Practice Quiz 1

Reading 12 Topics in Demand and Supply Analysis – Practice Quiz 2

Reading 12 Topics in Demand and Supply Analysis – Practice Quiz 3

Reading 13 The Firm and Market Structures 8 LOSs | 2 Quizzes

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Reading Content

0% Complete 0/8 Steps

Describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly

Explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure

Describe a firm’s supply function under each market structure

Describe and determine the optimal price and output for firms under each market structure

Explain factors affecting long-run equilibrium under each market structure

Describe pricing strategy under each market structure

Describe the use and limitations of concentration measures in identifying market structure

Identify the type of market structure within which a firm operates

Reading 13 The Firm and Market Structures – Quiz 1

Reading 13 The Firm and Market Structures – Quiz 2

Reading 14 Aggregate Output, Prices, and Economic Growth 15 LOSs | 2 Quizzes

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Reading Content

0% Complete 0/15 Steps

Calculate and explain gross domestic product (GDP) using expenditure and income approaches

Compare the sum-of-value-added and value-of-final-output methods of calculating GDP

Compare nominal and real GDP and calculate and interpret the GDP deflator

Compare GDP, national income, personal income, and personal disposable income

Explain the fundamental relationship among saving, investment, the fiscal balance, and the trade balance

Explain the IS and LM curves and how they combine to generate the aggregate demand curve

Explain the aggregate supply curve in the short run and long run

Explain causes of movements along and shifts in aggregate demand and supply curves

Describe how fluctuations in aggregate demand and aggregate supply cause short-run changes in the economy and the business cycle

Distinguish between the following types of macroeconomic equilibria: long-run full employment, short-run recessionary gap, short-run inflationary gap, and short-run stagflation

Explain how a short-run macroeconomic equilibrium may occur at a level above or below full employment;

Analyze the effect of combined changes in aggregate supply and demand on the economy

Describe sources, measurement, and sustainability of economic growth

Describe the production function approach to analyzing the sources of economic growth

Distinguish between input growth and growth of total factor productivity as components of economic growth

Reading 14 Aggregate Output, Prices, and Economic Growth – Quiz 1

Reading 14 Aggregate Output, Prices, and Economic Growth – Quiz 2

Reading 15 Understanding Business Cycles 9 LOSs | 2 Quizzes

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Reading Content

0% Complete 0/9 Steps

Describe the business cycle and its phases

Describe how resource use, housing sector activity, and external trade sector activity vary as an economy moves through the business cycle

Describe theories of the business cycle

Describe types of unemployment and compare measures of unemployment

Explain inflation, hyperinflation, disinflation, and deflation

Explain the construction of indexes used to measure inflation

Compare inflation measures, including their uses and limitations

Distinguish between cost-push and demand-pull inflation

Interpret a set of economic indicators and describe their uses and limitations

Reading 15 Understanding Business Cycles – Quiz 1

Reading 15 Understanding Business Cycles – Quiz 2

Study Session 5: Economics (2)

Reading 16 Monetary and Fiscal Policy 20 LOSs | 3 Quizzes

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Reading Content

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Compare monetary and fiscal policy

Describe functions and definitions of money

Explain the money creation process

Describe theories of the demand for and supply of money

Describe the Fisher effect

Describe roles and objectives of central banks

Contrast the costs of expected and unexpected inflation

Describe tools used to implement monetary policy

Describe the monetary transmission mechanism

Describe qualities of effective central banks

Explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates

Contrast the use of inflation, interest rate, and exchange rate targeting by central banks

Determine whether a monetary policy is expansionary or contractionary

Describe limitations of monetary policy

Describe roles and objectives of fiscal policy

Describe tools of fiscal policy, including their advantages and disadvantages

Describe the arguments about whether the size of a national debt relative to GDP matters

Explain the implementation of fiscal policy and difficulties of implementation

Determine whether a fiscal policy is expansionary or contractionary

Explain the interaction of monetary and fiscal policy

Reading 16 Monetary and Fiscal Policy – Quiz 1

Reading 16 Monetary and Fiscal Policy – Quiz 2

Reading 16 Monetary and Fiscal Policy – Quiz 3

Reading 17 International Trade and Capital Flows 10 LOSs | 2 Quizzes

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Reading Content

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Compare gross domestic product and gross national product

Describe benefits and costs of international trade

Distinguish between comparative advantage and absolute advantage

Compare the Ricardian and Heckscher–Ohlin models of trade and the source(s) of comparative advantage in each model

Compare types of trade and capital restrictions and their economic implications

Explain motivations for and advantages of trading blocs, common markets, and economic unions

Describe common objectives of capital restrictions imposed by governments

Describe the balance of payments accounts including their components

Explain how decisions by consumers, firms, and governments affect the balance of payments

Describe functions and objectives of the international organizations that facilitate trade, including the World Bank, the International Monetary Fund, and the World Trade Organization

Reading 17 International Trade and Capital Flows – Quiz 1

Reading 17 International Trade and Capital Flows – Quiz 2

Reading 18 Currency Exchange Rates 10 LOSs | 1 Quiz

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Reading Content

0% Complete 0/10 Steps

Define an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates

Describe functions of and participants in the foreign exchange market

Calculate and interpret the percentage change in a currency relative to another currency

Calculate and interpret currency cross-rates

Convert forward quotations expressed on a points basis or in percentage terms into an outright forward quotation

Explain the arbitrage relationship between spot rates, forward rates, and interest rates

Calculate and interpret a forward discount or premium

Calculate and interpret the forward rate consistent with the spot rate and the interest rate in each currency

Describe exchange rate regimes

Explain the effects of exchange rates on countries’ international trade and capital flows

Reading 18 Currency Exchange Rates – Quiz 1

Economics – Exam

CFA Level 1 – Economics

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