Cfa Level 1 Economics Analystprep

Reading 12 – Topics in Demand and Supply Analysis Preview 22:55

Reading 12 – Topics in Demand and Supply Analysis

– LOS 12a: calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure

– LOS 12b: compare substitution and income effects

– LOS 12c: distinguish between normal goods and inferior goods

– LOS 12d: describe the phenomenon of diminishing marginal returns

– LOS 12e: determine and describe breakeven and shutdown points of production

– LOS 12f: describe how economies of scale and diseconomies of scale affect costs

Reading 13 – The Firm and Market Structures Preview 21:26

Reading 13 – The Firm and Market Structures

– LOS 13a: describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly

– LOS 13b: explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure

– LOS 13c: describe a firm’s supply function under each market structure

– LOS 13d: describe and determine the optimal price and output for firms under each market structure

– LOS 13e: explain factors affecting long-run equilibrium under each market structure

– LOS 13f: describe pricing strategy under each market structure

– LOS 13g: describe the use and limitations of concentration measures in identifying market structure

– LOS 13h: identify the type of market structure within which a firm operates

Reading 14 – Aggregate Output, Prices, And Economic Growth Preview 34:44

Reading 14 – Aggregate Output, Prices, And Economic Growth

– LOS 14a: calculate and explain gross domestic product (GDP) using expenditure and income approaches

– LOS 14b: compare the sum-of-value-added and value-of-final-output methods of calculating GDP

– LOS 14c: compare nominal and real GDP and calculate and interpret the GDP deflator

– LOS 14d: compare GDP, national income, personal income, and personal disposable income

– LOS 14e: explain the fundamental relationship among saving, investment, the fiscal balance, and the trade balance

– LOS 14f: explain the IS and LM curves and how they combine to generate the aggregate demand curve

– LOS 14g: explain the aggregate supply curve in the short run and long run

– LOS 14h: explain causes of movements along and shifts in aggregate demand and supply curves

– LOS 14i: describe how fluctuations in aggregate demand and aggregate supply cause short-run changes in the economy and the business cycle

– LOS 14j: distinguish between the following types of macroeconomic equilibria: long-run full employment, short-run recessionary gap, short-run inflationary gap, and short-run stagflation

– LOS 14k: explain how a short-run macroeconomic equilibrium may occur at a level above or below full employment

– LOS 14l: analyze the effect of combined changes in aggregate supply and demand on the economy

– LOS 14m: describe sources, measurement, and sustainability of economic growth

– LOS 14n: describe the production function approach to analyzing the sources of economic growth

– LOS 14o: distinguish between input growth and growth of total factor productivity as components of economic growth

Reading 15 – Understanding Business Cycles Preview 28:52

Reading 15 – Understanding Business Cycles

– LOS 15a: describe the business cycle and its phases

– LOS 15b: describe how resource use, housing sector activity, and external trade sector activity vary as an economy moves through the business cycle

– LOS 15c: describe theories of the business cycle

– LOS 15d: describe types of unemployment and compare measures of unemployment

– LOS 15e: explain inflation, hyperinflation, disinflation, and deflation

– LOS 15f: explain the construction of indices used to measure inflation

– LOS 15g: compare inflation measures, including their uses and limitations

– LOS 15h: distinguish between cost-push and demand-pull inflation

– LOS 15i: interpret a set of economic indicators and describe their uses and limitations

Reading 16 – Monetary and Fiscal Policy Preview 29:18

Reading 16 – Monetary and Fiscal Policy

– LOS 16a: compare monetary and fiscal policy

– LOS 16b: describe functions and definitions of money

– LOS 16c: explain the money creation process

– LOS 16d: describe theories of the demand for and supply of money

– LOS 16e: describe the Fisher effect

– LOS 16f: describe roles and objectives of central banks

– LOS 16g: contrast the costs of expected and unexpected inflation

– LOS 16h: describe tools used to implement monetary policy

– LOS 16i: describe the monetary transmission mechanism

– LOS 16j: describe qualities of effective central banks

– LOS 16k: explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates

– LOS 16l: contrast the use of inflation, interest rate, and exchange rate targeting by central banks

– LOS 16m: determine whether a monetary policy is expansionary or contractionary

– LOS 16n: describe limitations of monetary policy

– LOS 16o: describe roles and objectives of fiscal policy

– LOS 16p: describe tools of fiscal policy, including their advantages and disadvantages

– LOS 16q: describe the arguments about whether the size of a national debt relative to GDP matters

– LOS 16r: explain the implementation of fiscal policy and difficulties of implementation

– LOS 16s: determine whether a fiscal policy is expansionary or contractionary

– LOS 16t: explain the interaction of monetary and fiscal policy

Reading 17 – International Trade and Capital Flows Preview 23:07

Reading 17 – International Trade and Capital Flows

– LOS 17a: compare gross domestic product and gross national product

– LOS 17b: describe benefits and costs of international trade

– LOS 17c: distinguish between comparative advantage and absolute advantage

– LOS 17d: explain the Ricardian and Heckscher–Ohlin models of trade and the source(s) of comparative advantage in each model

– LOS 17e: compare types of trade and capital restrictions and their economic implications

– LOS 17f: explain motivations for and advantages of trading blocs, common markets, and economic unions

– LOS 17g: describe common objectives of capital restrictions imposed by governments

– LOS 17h: describe the balance of payments accounts including their components

– LOS 17i: explain how decisions by consumers, firms, and governments affect the balance of payments

– LOS 17j: 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 18 – Currency Exchange Rates Preview 28:04

Reading 18 – Currency Exchange Rates

– LOS 18a: define an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates

– LOS 18b: describe functions of and participants in the foreign exchange market

– LOS 18c: calculate and interpret the percentage change in a currency relative to another currency

– LOS 18d: calculate and interpret currency cross-rates

– LOS 18e: convert forward quotations expressed on a points basis or in percentage terms into an outright forward quotation

– LOS 18f: explain the arbitrage relationship between spot rates, forward rates, and interest rates

– LOS 18g: calculate and interpret a forward discount or premium

– LOS 18h: calculate and interpret the forward rate consistent with the spot rate and the interest rate in each currency

– LOS 18i: describe exchange rate regimes

– LOS 18j: explain the effects of exchange rates on countries’ international trade and capital flows