CFA一级模考

CFA一级模考题
1 . A good is most likely to demonstrate higher price elasticity of demand:
A)when there are few substitutes for the good, than when there are many good substitutes.
B)in the long run than the short run.
C)if it represents a small portion of the consumer’s budget, than if it represents a large portion.
The correct answer was B
A good is likely to show a high price elasticity of demand when there are good substitutes, it represents a large proportion of consumer spending, and in the long run as consumers make changes that take time to implement in response to price changes for the good.
2 . The type of economic market that features a large number of competitors offering differentiated products is best characterized as:
A)perfect competition.
B)monopolistic competition.
C)oligopoly.
The correct answer was B
Monopolistic competition is used to describe markets where there are a large number of competitors producing differentiated products.
In perfect competition all firms produce identical products. In an oligopoly there is a small number of firms.
3 . A practice whereby a seller charges different prices to different consumers of the same product or service is called:
A)price competition.
B)discriminatory pricing.
C)price discrimination.
The correct answer was C
Price discrimination is the practice of charging different consumers different prices for the same product or service.
4 . A stable market equilibrium is best described as one in which:
A)the current market price equals the equilibrium price.
B)excess supply drives prices lower and excess demand drives prices higher.
C)the supply curve is less steeply sloped than the demand curve.
The correct answer was B
Stable market equilibria are defined as those in which excess supply tends to drive prices lower and excess demand tends to drive prices higher. Unstable equilibria are characterized by a downward sloping supply curve that is less steeply sloped than the demand curve, so that excess supply tends to drive prices up and excess demand tends to drive prices down (further away from the equilibrium value). The current market price and the equilibrium price can be equal in either stable or unstable equilibria.
5 . Which of the following most completely describes opportunity costs?
A)Opportunity costs include only implicit costs.
B)Opportunity costs include only explicit costs.
C)Opportunity costs include implicit and explicit costs.
The correct answer was C
Opportunity costs include implicit and explicit costs. Normal profit is the opportunity cost of ow ners’ time, resources, and expertise.。