2016 CFA Level 1 Economics Quick Review

Do a quick review of the Economics topics before the CFA exam
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  • Lectures 17
  • Length 4 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
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About This Course

Published 11/2015 English

Course Description

Economics is a fundamental subject for the CFA curriculum and is one of the most important topics of CFA study. As economics is part of each CFA level and gets integrated with Portfolio management in Level 3, it is imperative that you study properly and understand the concepts of Economics at CFA level 1. To assist you in your preparation, my course will give you a quick understanding of the Economics syllabus before your exam.

The CFA Level 1 Economics syllabus covers microeconomics, macroeconomics and economics in the global context and this quick review course covers the syllabus in short video lectures of just under 2 hours. In fifteen short lectures of 10 to 15 mins I will help you revise the Economics course and make you confident of passing the exam.

The key topics covered include

        • Demand & supply analysis: Introduction
        • Demand & supply analysis: Consumer demand
        • Demand & supply analysis: The firm
        • The Firm & market structures
        • Aggregate output, Prices, Economic growth
        • Understanding business cycles
        • Monetary and Fiscal policy
        • International trade and Capital flows
        • Currency exchange rates
        • Demand & supply analysis: The firm

Be aware that this course is not a substitute for reading the CBOK. I urge you to read it to get a good understanding of Economics and then use these lectures for quick and confident review before the exam.


What are the requirements?

  • Should preferably have read Economics topic from CFA CBOK.

What am I going to get from this course?

  • Have good knowledge of Economics topics for CFA exam
  • Be confident of performing well on Economics portion of the CFA exam

What is the target audience?

  • CFA candidates

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Section 1 - Introduction and Readings 13 to 14
01:27

This video gives an introduction to the Instructor and CFA review seris.

Lets begin
Preview
00:53
19:48

The student would be able to :

  • distinguish among types of markets;
  • explain the principles of demand and supply;
  • describe causes of shifts in and movements along demand and supply curves;
  • describe the process of aggregating demand and supply curves;
  • describe the concept of equilibrium (partial and general), and mechanisms by which markets achieve equilibrium;
  • distinguish between stable and unstable equilibria, including price bubbles, and identify instances of such equilibria;
  • calculate and interpret individual and aggregate demand, and inverse demand and supply functions, and interpret individual and aggregate demand and supply curves;
  • calculate and interpret the amount of excess demand or excess supply associated with a non-equilibrium price;
  • describe types of auctions and calculate the winning price(s) of an auction;
  • calculate and interpret consumer surplus, producer surplus, and total surplus;
  • describe how government regulation and intervention affect demand and supply;
  • forecast the effect of the introduction and the removal of a market interference (e.g., a price floor or ceiling) on price and quantity;
  • calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure.

13:48

The student would be able to :

  • describe consumer choice theory and utility theory;
  • describe the use of indifference curves, opportunity sets, and budget constraints in decision making;
  • calculate and interpret a budget constraint;
  • determine a consumer’s equilibrium bundle of goods based on utility analysis;
  • compare substitution and income effects;
  • distinguish between normal goods and inferior goods and explain Giffen goods and Veblen goods in this context.


Section 2: Section 2 Reading 15 Demand and Supply Analysis: The Firm
02:29

The student would introduced to :

  • calculate, interpret, and compare accounting profit, economic profit, normal profit, and economic rent;
  • calculate and interpret and compare total, average, and marginal revenue;
  • describe a firm’s factors of production;
  • calculate and interpret total, average, marginal, fixed, and variable costs;
  • determine and describe breakeven and shutdown points of production;
  • describe approaches to determining the profit-maximizing level of output;
  • describe how economies of scale and diseconomies of scale affect costs;
  • distinguish between short-run and long-run profit maximization;
  • distinguish among decreasing-cost, constant-cost, and increasing-cost industries and describe the long-run supply of each;
  • calculate and interpret total, marginal, and average product of labor;
  • describe the phenomenon of diminishing marginal returns and calculate and interpret the profit-maximizing utilization level of an input;
  • determine the optimal combination of resources that minimizes cost.
06:41

The student would be able to :

  • calculate, interpret, and compare accounting profit, economic profit, normal profit, and economic rent;
  • calculate and interpret and compare total, average, and marginal revenue;
02:33

The student would be able to :

  • describe approaches to determining the profit-maximizing level of output;
  • describe how economies of scale and diseconomies of scale affect costs;
  • distinguish between short-run and long-run profit maximization.
03:55

The student would be able to :

  • calculate and interpret total, average, marginal, fixed, and variable costs;
  • calculate and interpret total, marginal, and average product of labor;
  • describe the phenomenon of diminishing marginal returns and calculate and interpret the profit-maximizing utilization level of an input;
06:31

The student would be able to :

  • describe a firm’s factors of production;
09:41

The student would be able to :

  • describe approaches to determining the profit-maximizing level of output;
  • describe the phenomenon of diminishing marginal returns and calculate and interpret the profit-maximizing utilization level of an input;
  • determine the optimal combination of resources that minimizes cost.
Section 3: Section 3 - Readings 16 to 18
15:13

The student would be able to :

  • describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly;
  • explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure;
  • describe a firm’s supply function under each market structure;
  • describe and determine the optimal price and output for firms under each market structure;
  • explain factors affecting long-run equilibrium under each market structure;
  • describe pricing strategy under each market structure;
  • describe the use and limitations of concentration measures in identifying market structure;
  • identify the type of market structure within which a firm operates.
19:59

The student would be able to :

  • calculate and explain gross domestic product (GDP) using expenditure and income approaches;
  • compare the sum-of-value-added and value-of-final-output methods of calculating GDP;
  • compare nominal and real GDP and calculate and interpret the GDP deflator;
  • compare GDP, national income, personal income, and personal disposable income;
  • explain the fundamental relationship among saving, investment, the fiscal balance, and the trade balance;
  • explain the IS and LM curves and how they combine to generate the aggregate demand curve;
  • explain the aggregate supply curve in the short run and long run;
  • explain causes of movements along and shifts in aggregate demand and supply curves;
  • describe how fluctuations in aggregate demand and aggregate supply cause short-run changes in the economy and the business cycle;
  • distinguish between the following types of macroeconomic equilibria: long-run full employment, short-run recessionary gap, short-run inflationary gap, and short-run stagflation;
  • explain how a short-run macroeconomic equilibrium may occur at a level above or below full employment;
  • analyze the effect of combined changes in aggregate supply and demand on the economy;
  • describe sources, measurement, and sustainability of economic growth;
  • describe the production function approach to analyzing the sources of economic growth;
  • distinguish between input growth and growth of total factor productivity as components of economic growth.
13:42

The student would be able to :

  • describe the business cycle and its phases;
  • describe how resource use, housing sector activity, and external trade sector activity vary as an economy moves through the business cycle;
  • describe theories of the business cycle;
  • describe types of unemployment and measures of unemployment;
  • explain inflation, hyperinflation, disinflation, and deflation;
  • explain the construction of indices used to measure inflation;
  • compare inflation measures, including their uses and limitations;
  • distinguish between cost-push and demand-pull inflation;
  • describe economic indicators, including their uses and limitations;
19:31

The student would be able to :

  • compare monetary and fiscal policy;
  • describe functions and definitions of money;
  • explain the money creation process;
  • describe theories of the demand for and supply of money;
  • describe the Fisher effect;
  • describe roles and objectives of central banks;
  • contrast the costs of expected and unexpected inflation;
  • describe tools used to implement monetary policy;
  • describe the monetary transmission mechanism;
  • describe qualities of effective central banks;
  • explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates;
  • contrast the use of inflation, interest rate, and exchange rate targeting by central banks;
  • determine whether a monetary policy is expansionary or contractionary ;
  • describe limitations of monetary policy;
  • describe roles and objectives of fiscal policy;
  • describe tools of fiscal policy, including their advantages and disadvantages;
  • describe the arguments about whether the size of a national debt relative to GDP matters;
  • explain the implementation of fiscal policy and difficulties of implementation;
  • determine whether a fiscal policy is expansionary or contractionary;
  • explain the interaction of monetary and fiscal policy.
Section 4: Section 4 - Readings 19 to 21
11:53

The student would be able to :

  • compare gross domestic product and gross national product;
  • describe benefits and costs of international trade;
  • distinguish between comparative advantage and absolute advantage;
  • explain the Ricardian and Heckscher–Ohlin models of trade and the source(s) of comparative advantage in each model;
  • compare types of trade and capital restrictions and their economic implications;
  • explain motivations for and advantages of trading blocs, common markets, and economic unions;
  • describe common objectives of capital restrictions imposed by governments;
  • describe the balance of payments accounts including their components;
  • explain how decisions by consumers, firms, and governments affect the balance of payments;
  • describe functions and objectives of the international organizations that facilitate trade, including the World Bank, the International Monetary Fund, and the World Trade Organization.
10:55

The student would be able to :

  • define an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates;
  • describe functions of and participants in the foreign exchange market;
  • calculate and interpret the percentage change in a currency relative to another currency;
  • calculate and interpret currency cross-rates;
  • convert forward quotations expressed on a points basis or in percentage terms into an outright forward quotation;
  • explain the arbitrage relationship between spot rates, forward rates, and interest rates;
  • calculate and interpret a forward discount or premium;
  • calculate and interpret the forward rate consistent with the spot rate and the interest rate in each currency;
  • describe exchange rate regimes;
  • explain the effects of exchange rates on countries’ international trade and capital flows.
10 questions

Try and complete this quiz in less than 15% with atleast 80% accuracy

Bonus Lecture: Coupon codes and Access to free courses
00:40

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Instructor Biography

Tanuja Yadav, Chartered Financial Analyst

A CFA charter holder, I have extensive experience in the field of F&A outsourcing and have worked on various projects within the F&A Arena. I have 11 years of experience in F&A delivery, handling end to end finance and accounting processes, F&A practice and process improvement. I am also a visiting faculty with International College of Financial Planning, New Delhi where I have taken classes for CFA L 2 and 3. I have my own channel on Youtube on Finance and Investments.

Specialties: Finance, Fixed Income, Treasury, Accounts Payable, Accounts Receivables, Reconciliation, Fixed Asset and Project accounting, Solution development, F&A Training, SOX testing, Fraud risk assessment and Process streamlining.

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