CFA Questions & Answers

Given a shift to the left in the demand curve, which of the following identifies the short-run response and long-run response of supply relative to beginning supply?
Short-run Response of Supply Decreases modestly, Long-Run Response of Supply Increases Modestly
Short-run Response of Supply Decreases modestly, Long-Run Response of supply Decreases Substantially
Short-run Response of Supply Increases modestly, Long-Run Response of Supply Decreases Substantially
None of the above


Assume the demand curve for compact discs slopes downwards, and the supply curve slopes upwards. If the price of CD players decreases, then:
The equilibrium price of compact discs will fall
The equilibrium price of compact discs will rise
Both are correct
None of the given is correct


Which of the following will occur if a legal price floor is placed on a good below its free-market equilibrium?
Surpluses will develop
The equilibrium price will ration the good
The quantity sold will increase
None of the above


In the long run, a shift in the supply curve to the right will result in:
An increase in price and an increase in quantity
A decrease in price and a decrease in quantity
A decrease in price and an increase in quantity
None of the above


During the 1990's, the price of VCR's fell by about 30%, and the quantity sold decreased by the same amount. The demand for VCR's must
Be inelastic
Be elastic
Have shifted to the left
None of the above


In the short run, producers will respond to a decrease in demand most likely by:
Increasing the amount of labor used in production
Increasing the amount of capital expenditures
Reducing the price of goods
None of the above


Producer surplus is the
Area under the supply curve to the left of the amount sold
Area under the supply curve to the right of the amount sold
Amount the seller is paid less the cost of production
None of the above


A marketing survey shows that gate receipts would increase if the price of tickets to a summer rock concert increased, even though the number of tickets sold would fall. What does this imply about the price elasticity of demand for concert tickets?
Demand is inelastic
Demand is elastic
Demand is unit elastic
None of the above


New legislation setting a price ceiling will most likely cause:
A market surplus
A decrease in demand
A market shortage
None of the above


All of the following factors will cause a demand curve to shift EXCEPT changes in:
The cost of production for the product
The number of consumers in the market
The prices of related goods
None of the above

Doji Candlestick

Doji is a very powerful candle shows a balance of supply and demand.

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Hanging Man Candlestick

Hanging Man candle which gives a very strong signal of a trend reversal.

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Inverted Hammer Candlestick

This candle implies a very strong signal of a trend reversal (to uptrend).

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Moving Average Indicator

This indicator is used on charts for trend identification.

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