CFA Economics

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  1. Demand curve is a function of?
    • Price
    • Income
    • Price of related goods
  2. Supply curve is a function of?
    • Selling Price
    • Wages
    • Cost of Materials
  3. Auctions
    • English (ascending)
    • Sealed Bid
    • Vickery (sealed bid)
    • Dutch (descending bid)
    • modified Dutch (all get lowest)
  4. what is the deadweight loss from over supply and under supply?
    • over and under supply = deadweight loss to both producer and consumer
    • slope of D & S depends who bears most.
  5. How to calculate GDP?
    • income approach (total income from households + bus)
    • expenditure approach (total amount spent on goods and services produced... 2 methods- sum of value added or value of final product)

    GDP = C + I + G + (X-M)
  6. Types of income
    • National Inc - sum of income received by all factors of productions that go into final output
    • Persona Inc - pretax income householdsĀ 
    • Disposable Inc - PI after taxes

    GDP = NI + CCA (dep of phys capital) + stat discrep (income approach vs expend approach)
  7. Relationship between fiscal balance etc
    (G-T) = (S-I)-(X-M)
Card Set
CFA Economics
CFA Economics Level 1 2013
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