CFA Question & Answer


Multiple Choice— Select the option that best completes the sentence or provides the answer to the question.
  1. Assume that a firm is a price taker in its input markets. If the firm's technology is characterized by diminishing marginal physical product of its variable input in the short run, the firm's short-run:

  2. The marginal output rule states that if a firm does not shut down, then it should produce output at a level where:

  3. Assume the demand curve for compact discs slopes downwards, and the supply curve slopes upwards. If the price of CD players decreases, then:

  4. Indifference curves that are convex to the origin reflect:

  5. Jonathon's preferences satisfy the non-satiation assumption. This means that he must prefer the bundle consisting of two glasses of orange juice and one sandwich to which of the following bundles?

  6. The rate at which a firm can substitute one factor for another while still producing the same level of output is known as the:

  7. Demand for a good is likely to be more elastic:

  8. The value of price elasticity of demand:

  9. If a 5% increase in income leads to a 12% increase in the quantity demanded of mobile phones, ceteris paribus, the value of the income elasticity of demand for mobile phones is:

  10. Fred divides his purchases between beer and pizzas. Suppose Fred's budget constraint is graphed with beer on the horizontal axis and pizzas on the vertical axis. If the price of beer is $1.50 per pint, the price of pizzas is $2 each, and Fred's income is $30 per week, then the budget constrain has a slope equal to: