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Study sets matching "cfa econ"

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Study sets matching "cfa econ"

152 terms
CFA Economics
Own Price Elasticity
Elastic
Inelastic
Straight Line Demand Curve
If absolute value of the above >1, demand is ____
If absolute value of above is <1, demand is ____
On ____ _____ _____ _____,total revenue is maximized where pr…
Own Price Elasticity
Elastic
If absolute value of the above >1, demand is ____
160 terms
Economics CFA
3 Types of Markets
Demand Function
Law of Demand
Law of Supply
1. Factors of production are the resources a firm uses to gen…
Demand function for Good X over some period of time is:... Qd =…
Why quantity demanded decreases as price increases.
Greater quantities are produced at higher prices.
3 Types of Markets
1. Factors of production are the resources a firm uses to gen…
Demand Function
Demand function for Good X over some period of time is:... Qd =…
266 terms
CFA - Economics
Product Markets
Factor Markets
Intermediate Goods
Movement Along Supply/Demand Line
Goods and services provided to consumers
raw materials, goods and services used in production
Goods and services used in the production of final goods and…
The change in quantity demanded/supplied in response to a cha…
Product Markets
Goods and services provided to consumers
Factor Markets
raw materials, goods and services used in production
83 terms
CFA economics
Factors of production
Production function
What decisions about factors of produc…
What objective should guide the firm i…
The inputs to the production of goods and services (land, lab…
Q = f(K,L)... The relationship between the flow of output and th…
Entrepreneurs must decide where to locate the manufacturing f…
Any decision involving input factors should focus on how that…
Factors of production
The inputs to the production of goods and services (land, lab…
Production function
Q = f(K,L)... The relationship between the flow of output and th…
41 terms
CFA Economics
Economics
Macroeconomics
Microeconomics
Demand and supply analysis
- The study of production, distribution and consumption of go…
- The branch of economics that deals with aggregate economic…
- The branch of economics that deals with markets and decisio…
- The study of how buyers and sellers interact to determine t…
Economics
- The study of production, distribution and consumption of go…
Macroeconomics
- The branch of economics that deals with aggregate economic…
358 terms
CFA: Economics
Economics
Macroeconomics
Microeconomics
Demand and Supply Analysis
The study of the production, distribution, and consumption of…
The branch of economics that deals with aggregate economic qu…
The branch of economics that deals with markets and decision…
The study of how buyers and sellers interact to determine tra…
Economics
The study of the production, distribution, and consumption of…
Macroeconomics
The branch of economics that deals with aggregate economic qu…
233 terms
CFA Economics
What are the obstacles to the Efficien…
Describe the law of demand
Describe the law of supply
What is partial equilibrium analysis?
Price controls, taxes and trade restrictions, external costs,…
The quantity demanded typically increases at lower prices
A greater quantity is supplied at higher prices
Partial equilibrium analysis assumes that all factors influen…
What are the obstacles to the Efficien…
Price controls, taxes and trade restrictions, external costs,…
Describe the law of demand
The quantity demanded typically increases at lower prices
68 terms
CFA - Economics
Marginal product is at a maximum when...
Sources of sustainable long-run econom…
Price ceiling will most likely cause:
Monopolistic Competition
marginal cost is at a minimum
labor force, human capital, stock of physical capital, supply…
market shortage; restrict the producer from increasing sellin…
price is greater than marginal cost
Marginal product is at a maximum when...
marginal cost is at a minimum
Sources of sustainable long-run econom…
labor force, human capital, stock of physical capital, supply…
241 terms
CFA Level 1 - Economics
Price Elasticity of Demand Formula
Cross Elasticity of Demand Formula
Income Elasticity of Demand Formula
Price Elasticity of Supply Formula
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
(% Change in Quantity Supplied) / (% Change in Price)
Price Elasticity of Demand Formula
(% Change in Quantity Demanded) / (%t Change in Price)
Cross Elasticity of Demand Formula
(% Change in Quantity Demanded) / (% Change in Price of Subst…
14 terms
CFA Economics
Law of Demand And Market Mechanism
Common Value Auction vs. Private Value…
Auctions:... Ascending Price, First Price…
Dead weight loss
As price goes down, demand will rise. Prices will adjust to a…
CVA = will reveal correct price only after the auction is set…
AP - common one to think of, auctioneer raises to highest pri…
Loss of consumer or producer surplus, often caused by an impo…
Law of Demand And Market Mechanism
As price goes down, demand will rise. Prices will adjust to a…
Common Value Auction vs. Private Value…
CVA = will reveal correct price only after the auction is set…
181 terms
CFA economics review
inverse demand function
What is vertical intercept of demand c…
What is slope of demand curve? QD = 6.…
private value auction
15.90
PQ = 15.90 - 2.5QD so demand curve slope is -2.5
An auction in which the value of the item being auctioned is…
inverse demand function
What is vertical intercept of demand c…
15.90
Economics CFA
An example of a negative incintive
Positive incintives could be
How are risk and return related?
Why is there a diffrence between intre…
Parking ticket
Coupons
High risk equals high return
Banks are profit making institutions
An example of a negative incintive
Parking ticket
Positive incintives could be
Coupons
262 terms
CFA Economics
1.Which of the following markets is le…
2.Which of the following markets is mo…
Which of the following markets is most…
The observation "as a price of a good…
C
C
A is correct. Coats are finished goods, the result of the out…
B. law of demand
1.Which of the following markets is le…
C
2.Which of the following markets is mo…
C
259 terms
CFA Level 1 - Economics
Price Elasticity of Demand Formula
Cross Elasticity of Demand Formula
Income Elasticity of Demand Formula
Price Elasticity of Supply Formula
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
(% Change in Quantity Supplied) / (% Change in Price)
Price Elasticity of Demand Formula
(% Change in Quantity Demanded) / (%t Change in Price)
Cross Elasticity of Demand Formula
(% Change in Quantity Demanded) / (% Change in Price of Subst…
95 terms
CFA Level 1: Economics
Product Markets (Goods Markets)
Factor Markets
Intermediate Goods
Demand Function
Markets for goods and services to consumers
Markets for factors of production (raw material, goods and se…
Good and services used in the production of final goods and s…
Provides the quantity demanded as a function of price of the…
Product Markets (Goods Markets)
Markets for goods and services to consumers
Factor Markets
Markets for factors of production (raw material, goods and se…
82 terms
CFA Level II Economics
Real exchange rate vs nominal exchange…
AUD:USD USD/AUD AUD=?USD 改写
Currency A/Currency B 表示
Pips
FX real(d/f)=FX nominal (d/f) x CPI-f/CPI-d
AUD:USD=0.6... 0.6 USD/AUD... AUD=0.6 USD
我们所关心的总是/之后的这个,分母用分子 表示... 0.6USD/AUD----AUD=0.6 USD或者AUD:USD=0.6
the difference between offer and bid price is the spread, spr…
Real exchange rate vs nominal exchange…
FX real(d/f)=FX nominal (d/f) x CPI-f/CPI-d
AUD:USD USD/AUD AUD=?USD 改写
AUD:USD=0.6... 0.6 USD/AUD... AUD=0.6 USD
289 terms
CFA Level 1 - Economics
Types of markets
Demand
Supply
Aggregating supply and demand functions
Factor markets = markets for factors of production (land, lab…
The willingness and ability of consumers to purchase a given…
Refers to the willingness and ability of producers to sell a…
Individual supply and demand curves are aggregated into marke…
Types of markets
Factor markets = markets for factors of production (land, lab…
Demand
The willingness and ability of consumers to purchase a given…
19 terms
cfa 2 economics 1
what are 3 factors that impact interba…
whats an easy rule to remember for con…
what the rule to get EUR/US offer from…
if a spot price $/1.2 euro and fwd pri…
1. market volatility 2. time of day 3. which currencies
up the bid and multiple, down the ask and devide
Eur/US offier = 1/(US/Eur bid)
fwd premium. fwd - spot is positive so premium. 1.25-1.2 >0 s…
what are 3 factors that impact interba…
1. market volatility 2. time of day 3. which currencies
whats an easy rule to remember for con…
up the bid and multiple, down the ask and devide
30 terms
2016 CFA Volume 2(Economics)
Factor Markets
Goods Markets
Difference between intermediate goods/…
Law of demand
1. Markets for the purchase and sale of factors of production…
1.Markets for the output of production... 2. Firms buy the servi…
1.Intermediate goods and services are those purchased for use…
price rises/falls, buy less/more
Factor Markets
1. Markets for the purchase and sale of factors of production…
Goods Markets
1.Markets for the output of production... 2. Firms buy the servi…
37 terms
CFA Book 2 - Economics
Types of Markets
Capital Markets
Movement Along Versus Shift in Curve
Two Types of Actions
1. Markets for Factors of Production, and ... 2. Markets for Ser…
Markets where firms raise money for investment by selling deb…
Movement along curve comes from change in price. A shift in t…
Common Value Auction and Private Auction
Types of Markets
1. Markets for Factors of Production, and ... 2. Markets for Ser…
Capital Markets
Markets where firms raise money for investment by selling deb…
75 terms
CFA 1 - Economics
partial equilibrium analysis
Stable equilibrium
unstable equilibrium
bubble
analysis of the market for a single good.
Movement of the price away from its equilibrium level results…
Movement of the price away from its equilibrium level results…
unsustainable increase in price of an asset type resulting fr…
partial equilibrium analysis
analysis of the market for a single good.
Stable equilibrium
Movement of the price away from its equilibrium level results…
32 terms
CFA II economics (old)
the basis for the relationship between…
the foundation for all versions of pur…
extends the law of one price to includ…
the percentage change in the spot exch…
the basis for this relationship is known as purchasing power…
the law of one price
absolute version of PPP
relative version of PPP
the basis for the relationship between…
the basis for this relationship is known as purchasing power…
the foundation for all versions of pur…
the law of one price
43 terms
CFA Level I: Economics
Common Value auction
oil lease auctions
winner's curse
private value auction
value of item same to every bidder; bidders do not know value…
common value auction
in common value auction, sometimes winner (highest bidder) wi…
value that each bidder places on an item is value that it has…
Common Value auction
value of item same to every bidder; bidders do not know value…
oil lease auctions
common value auction
60 terms
CFA 2 - 3.Economics
One Third Rule
Classical Growth Theory
Neo-Classical Growth Theory
New Growth Theory
- At given technology level, 1% increase in capital/labor hou…
- Real GDP growth temporary (RGDP/person increase above subsi…
- No technological change -> no RGDP growth.... - Technology cha…
- Economic growth continues indefinitely as technology advanc…
One Third Rule
- At given technology level, 1% increase in capital/labor hou…
Classical Growth Theory
- Real GDP growth temporary (RGDP/person increase above subsi…
149 terms
CFA Level 1 - Economics
Price Elasticity of Demand
Factors increasing price elasticity
Cross Elasticity of Demand
Income Elasticity of Demand
(% Change in Quantity Demanded) / (%t Change in Price)
Many substitutes... High proportion of consumer spending... Greater…
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
Price Elasticity of Demand
(% Change in Quantity Demanded) / (%t Change in Price)
Factors increasing price elasticity
Many substitutes... High proportion of consumer spending... Greater…
256 terms
CFA Level 1 - Economics
Price Elasticity of Demand
Cross Elasticity of Demand
Income Elasticity of Demand
Price Elasticity of Supply
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
(% Change in Quantity Supplied) / (% Change in Price)
Price Elasticity of Demand
(% Change in Quantity Demanded) / (%t Change in Price)
Cross Elasticity of Demand
(% Change in Quantity Demanded) / (% Change in Price of Subst…
256 terms
CFA Level 1 - Economics
Price Elasticity of Demand
Cross Elasticity of Demand
Income Elasticity of Demand
Price Elasticity of Supply
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
(% Change in Quantity Supplied) / (% Change in Price)
Price Elasticity of Demand
(% Change in Quantity Demanded) / (%t Change in Price)
Cross Elasticity of Demand
(% Change in Quantity Demanded) / (% Change in Price of Subst…
257 terms
CFA Level 1 - Economics
Price Elasticity of Demand
Cross Elasticity of Demand
Income Elasticity of Demand
Price Elasticity of Supply
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
(% Change in Quantity Supplied) / (% Change in Price)
Price Elasticity of Demand
(% Change in Quantity Demanded) / (%t Change in Price)
Cross Elasticity of Demand
(% Change in Quantity Demanded) / (% Change in Price of Subst…
7 terms
CFA Level 1 - Economics
Money multiplier
Veblen good
When does MC reduce in the short run
Quantity theory of money
= 1/(reserve requierment )
higher price makes the good more desirable... Veblen goods viol…
MC reduces in the short run due to economies from greater spe…
MV = PY... money supply x velocity = price x real output
Money multiplier
= 1/(reserve requierment )
Veblen good
higher price makes the good more desirable... Veblen goods viol…
60 terms
CFA 2 - 3.Economics
One Third Rule
Classical Growth Theory
Neo-Classical Growth Theory
New Growth Theory
- At given technology level, 1% increase in capital/labor hou…
- Real GDP growth temporary (RGDP/person increase above subsi…
- No technological change -> no RGDP growth.... - Technology cha…
- Economic growth continues indefinitely as technology advanc…
One Third Rule
- At given technology level, 1% increase in capital/labor hou…
Classical Growth Theory
- Real GDP growth temporary (RGDP/person increase above subsi…
63 terms
CFA-Quick Sheet-Economics
Price Elasticity-equation
Price Elasticity-definition
Income Elasticity-equation
Income Elasticity-definition
%∆ quantity demanded/%∆ price
absolute value>1, elastic... absolute value<1, inelastic... straigh…
%∆ quantity demanded/%∆ income
if +, normal good... if -, inferior good
Price Elasticity-equation
%∆ quantity demanded/%∆ price
Price Elasticity-definition
absolute value>1, elastic... absolute value<1, inelastic... straigh…
582 terms
CFA Level 1: Economics
Theory of consumer vs theory of firm?
Factor markets
Goods markets
When can a trade for a good takes place?
Theory of consumer deals with deals with consumption by utili…
Markets for the purchase and sale of factors of production.…
markets for the output of production.
Whenever the perceived value of the good exceeds the expected…
Theory of consumer vs theory of firm?
Theory of consumer deals with deals with consumption by utili…
Factor markets
Markets for the purchase and sale of factors of production.…
133 terms
CFA Level 1 - Economics
factors of production
services and finished goods
intermediate goods
capital markets
Resources used in production (i.e. crude oil, labor, etc.)
Results of the production process (i.e. cars, clothing, liquor)
Goods used in the production process (i.e. computer chips use…
Markets where firms raise money for investment by selling deb…
factors of production
Resources used in production (i.e. crude oil, labor, etc.)
services and finished goods
Results of the production process (i.e. cars, clothing, liquor)
30 terms
CFA Economics 2
real gdp
aggregate demand
short run aggregate supply
long run aggregate supply
consumption spending + investment + government spending + net…
factors affecting ___________ include: consumers' wealth, bus…
factors affecting ________ include: input prices, labor produ…
factors affecting ______ include: size of labor force, human…
real gdp
consumption spending + investment + government spending + net…
aggregate demand
factors affecting ___________ include: consumers' wealth, bus…
71 terms
CFA Economics: LOSs 16
Give 3 qualities of perfect competition
What industry is an example of perfect…
If a demand curve is said to be perfec…
Define a 'monopoly'
1) Many firms 2) identical prices & products 3) forced to sel…
The wheat market.
Horizontal line.
A single seller of a product where there are no close substit…
Give 3 qualities of perfect competition
1) Many firms 2) identical prices & products 3) forced to sel…
What industry is an example of perfect…
The wheat market.
159 terms
CFA Level 1 - Economics
Price Elasticity of Demand
Price Elasticity of Supply
Factors increasing price elasticity
Cross Elasticity of Demand
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Supplied) / (% Change in Price)... When P…
Many substitutes... High proportion of consumer spending... Greater…
(% Change in Quantity Demanded) / (% Change in Price of Subst…
Price Elasticity of Demand
(% Change in Quantity Demanded) / (%t Change in Price)
Price Elasticity of Supply
(% Change in Quantity Supplied) / (% Change in Price)... When P…
51 terms
CFA Level 2 Economics
pips
spread quote is affected by
interbank spread is affected by
Value of a forward contract at maturit…
= 1/10000
1. spread in the interbank market for the same currency pair…
1. currencies involved... 2. time of day... 3. market volatility
Vt = (FPt-FP) (contract size)
pips
= 1/10000
spread quote is affected by
1. spread in the interbank market for the same currency pair…
31 terms
CFA Economic terms 1
Increase in aggregate demand
Decrease in aggregate demand
Increase in aggregate supply
Decrease in aggregate supply
Real GDP increases... Unemployment decreases... Price level increases
Real GDP decreases... Unemployment increases... Price level decreases
Real GDP increases... Unemployment decreases... Price level decreases
Real GDP decreases... Unemployment increases... Price level increases
Increase in aggregate demand
Real GDP increases... Unemployment decreases... Price level increases
Decrease in aggregate demand
Real GDP decreases... Unemployment increases... Price level decreases
33 terms
CFA Economics 1
% change quantity demanded/% change pr…
elastic
inelastic
1
own price elasticity
if the absolute value of own price elasticity > 1, demand is…
if the absolute value of own price elasticity < 1, demand is…
On a straight-line demand curve, total revenue is maximized w…
% change quantity demanded/% change pr…
own price elasticity
elastic
if the absolute value of own price elasticity > 1, demand is…
36 terms
CFA 1 Economics
For a country to gain from trade, it m…
Change in the real exchange rate
Real exchange rate
Current Account balance
a comparative advantage
[(1 + Change in exchange rate) × (1 + Change in price level i…
Nominal spot exchange rate × CPI of the foreign country / CPI…
Sp - I + (T - G - R)
For a country to gain from trade, it m…
a comparative advantage
Change in the real exchange rate
[(1 + Change in exchange rate) × (1 + Change in price level i…
26 terms
CFA Economics: LOSs 17
GDP is defined as the total market val…
What are transfer payments? Are transf…
Market values as they relate to GDP ar…
Are goods and services provided by the…
Goods and services produced in a country within a certain tim…
Payments made by the government directly to citizens. Transfe…
Prices; the value of computer chips that Intel makes is not i…
Yes, although they are not explicitly priced in markets. Exam…
GDP is defined as the total market val…
Goods and services produced in a country within a certain tim…
What are transfer payments? Are transf…
Payments made by the government directly to citizens. Transfe…
60 terms
CFA 2 - Economics
One Third Rule
Classical Growth Theory
Neo-Classical Growth Theory
New Growth Theory
- At given technology level, 1% increase in capital/labor hou…
- Real GDP growth temporary (RGDP/person increase above subsi…
- No technological change -> no RGDP growth.... - Technology cha…
- Economic growth continues indefinitely as technology advanc…
One Third Rule
- At given technology level, 1% increase in capital/labor hou…
Classical Growth Theory
- Real GDP growth temporary (RGDP/person increase above subsi…
30 terms
CFA II: Economics
calculate and interpret the bid-ask sp…
identify a triangular arbitrage opport…
explain international parity relations…
explain international parity relations…
EX: 1.3650USD/EUR means that the Euro, the base currency, cos…
Steps:... Given the Dealer Bid/Offer, calculate the same combina…
Interest Rate Parity:... Covered Interest Rate Parity - a condit…
Purchasing Power Parity:... Absolute - the spot exchange rate be…
calculate and interpret the bid-ask sp…
EX: 1.3650USD/EUR means that the Euro, the base currency, cos…
identify a triangular arbitrage opport…
Steps:... Given the Dealer Bid/Offer, calculate the same combina…
241 terms
CFA Level 1 - Economics
Price Elasticity of Demand Formula
Cross Elasticity of Demand Formula
Income Elasticity of Demand Formula
Price Elasticity of Supply Formula
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
(% Change in Quantity Supplied) / (% Change in Price)
Price Elasticity of Demand Formula
(% Change in Quantity Demanded) / (%t Change in Price)
Cross Elasticity of Demand Formula
(% Change in Quantity Demanded) / (% Change in Price of Subst…
37 terms
CFA Level 1 Economics
Own-price elasticity of demand
MRSpb
Optimal Consumption
Marginal Revenue in terms of Price Ela…
=(%deltaQd/%deltaP)
Number of blueberries I'm willing to give up for 1 more peanut
Set MRSab = Pa/Pb
MR = P[1 - (1/Ep)]
Own-price elasticity of demand
=(%deltaQd/%deltaP)
MRSpb
Number of blueberries I'm willing to give up for 1 more peanut
78 terms
CFA Level 1 - Economics
law of demand
law of supply
partial equilibrium analysis
general equilibrium analysis
rule that says demand typically increases at lower prices
rule that says supply typically increases at higher prices
equilibrium analysis that considers all other factors other t…
equilibrium analysis that considers the relationship between…
law of demand
rule that says demand typically increases at lower prices
law of supply
rule that says supply typically increases at higher prices
241 terms
CFA Level 1 - Economics
Price Elasticity of Demand Formula
Cross Elasticity of Demand Formula
Income Elasticity of Demand Formula
Price Elasticity of Supply Formula
(% Change in Quantity Demanded) / (%t Change in Price)
(% Change in Quantity Demanded) / (% Change in Price of Subst…
(% Change in Quantity Demanded) / (% Change in Income)
(% Change in Quantity Supplied) / (% Change in Price)
Price Elasticity of Demand Formula
(% Change in Quantity Demanded) / (%t Change in Price)
Cross Elasticity of Demand Formula
(% Change in Quantity Demanded) / (% Change in Price of Subst…
42 terms
CFA Level II - Economics
pips
Buy base currency at:
(USD/EUR)bid
Factors impacting spread
= 1/10,000
Buy base currency at ask, sell at bid... Buy price currency at…
1/(EUR/USD)offer
1. interbank spread (lower volume, higher volatility increase…
pips
= 1/10,000
Buy base currency at:
Buy base currency at ask, sell at bid... Buy price currency at…
40 terms
CFA II economics (new)
The main criticism of the neoclassical…
Endogenous growth theory explains
the difference between the endogenous…
expenditures made on R&D and for human…
it provides no quantifiable prediction of the rate or form of…
technological progress within the model rather than treating…
the endogenous growth model allows for the possibility of con…
may have large positive externalities or spillover effects. P…
The main criticism of the neoclassical…
it provides no quantifiable prediction of the rate or form of…
Endogenous growth theory explains
technological progress within the model rather than treating…
17 terms
CFA Level 1 - Economics
Demand Function
Law of Demand
QDG = 7.5 − 0.5PG + 0.1I − 0.05PA... (G=…
QDG = 7.5 − 0.5PG + 0.1I − 0.05PA... Con…
QDx = f(Px,I,Py,...)... Meaning: "Q demanded of Good X (QDx) de…
P & QD are inversely related... As P increases, consumers will…
a. Decrease in QD (this conforms to law of demand)... b. Increas…
QDG = 7.5 − 0.5PG + 0.1(60) − 0.05(30) = 12 − 0.5PG... Ans1: QD…
Demand Function
QDx = f(Px,I,Py,...)... Meaning: "Q demanded of Good X (QDx) de…
Law of Demand
P & QD are inversely related... As P increases, consumers will…
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