CFA Level 1 Study Material - Economics

Demand and Supply Analysis

Demand Analysis: The Consumer

  • Demand Concepts
  • Own- Price Elasticity of Demand
  • Income Elasticity of Demand
  • Cross- Price Elasticity of Demand
  • Substitution and Income Effects
  • Normal and Inferior Goods 
 

Supply Analysis: The Firm

  • Marginal Returns and Productivity
  • Breakeven and Shutdown Analysis
  • Understanding Economies and Diseconomies of Scale

Market Structures

    • Analysis of Market Structures 
      • Economists’ Four Types of Structure 
      • Factors That Determine Market Structure 
    • Perfect Competition 
    • Monopolistic Competition
    • Oligopoly
    • Monopoly
    • Identification of Market Structure 
      • Econometric Approaches 
      • Simpler Measures

Aggregate Output, Prices, and Economic Growth

    • Aggregate Output and Income 
      • Gross Domestic Product 
      • The Components of GDP 
      • GDP, National Income, Personal Income, and Personal Disposable Income 
    • Aggregate Demand, Aggregate Supply, and Equilibrium 
      • Aggregate Demand 
      • Aggregate Supply 
      • Shifts in Aggregate Demand and Supply 
      • Equilibrium GDP and Prices 
    • Economic Growth and Sustainability 
      • The Production Function and Potential GDP 
      • Sources of Economic Growth 
      • Measures of Sustainable Growth 

Understanding Business Cycles

    • Introduction 
    • Overview of the Business Cycle 
      • Phases of the Business Cycle 
      • Resource Use through the Business Cycle 
      • Housing Sector Behavior 
      • External Trade Sector Behavior 
    • Theories of the Business Cycle 
      • Neoclassical and Austrian Schools 
      • Keynesian and Monetarist Schools 
      • The New Classical School
    • Unemployment and Inflation 
      • Unemployment 
      • Inflation
    • Economic Indicators 
      • Popular Economic Indicators 
      • Other Variables Used as Economic Indicators

Monetary and Fiscal Policy

    • Monetary Policy 
      • Money 
      • The Roles of Central Banks 
      • The Objectives of Monetary Policy 
      • Contractionary and Expansionary Monetary Policies and the Neutral Rate 
      • Limitations of Monetary Policy 
    • Fiscal Policy
      • Roles and Objectives of Fiscal Policy 
      • Fiscal Policy Tools and the Macroeconomy 
      • Fiscal Policy Implementation: Active and Discretionary Fiscal Policy 
    • The Relationship between Monetary and Fiscal Policy 
      • Factors Influencing the Mix of Fiscal and Monetary Policy 
      • Quantitative Easing and Policy Interaction
      • The Importance of Credibility and Commitment

International Trade and Capital Flows

    • International Trade
      • Basic Terminology 
      • Patterns and Trends in International Trade and Capital Flows 
      • Benefits and Costs of International Trade 
      • Comparative Advantage and the Gains from Trade 
    • Trade and Capital Flows: Restrictions and Agreements 
      • Tariffs 
      • Quotas 
      • Export Subsidies 
      • Trading Blocs, Common Markets, and Economic Unions 
      • Capital Restrictions 
    • The Balance of Payments 
      • Balance of Payments Accounts 
      • Balance of Payment Components
      • Paired Transactions in the BOP Bookkeeping System 
      • National Economic Accounts and the Balance of Payments 
    • Trade Organizations 
      • International Monetary Fund 
      • World Bank Group 
      • World Trade Organization

Currency Exchange Rates

    • The Foreign Exchange Market 
      • Market Functions 
      • Market Participants
      • Market Size and Composition 
    • Currency Exchange Rate Calculations 
      • Exchange Rate Quotations 
      • Cross- Rate Calculations 
      • Forward Calculations 
    • Exchange Rate Regimes 
      • The Ideal Currency Regime 
      • Historical Perspective on Currency Regimes 
      • A Taxonomy of Currency Regimes 
    • Exchange Rates, International Trade, and Capital Flows 
      • Exchange Rates and the Trade Balance: The Elasticities Approach 
      • Exchange Rates and the Trade Balance: The Absorption Approach