CFA一级百题进阶：经济学.doc

3. Economics If marginal cost per unit is greater than average total cost per unit, increasing output will most likely cause: Q-1. A. marginal cost to decrease. B. average fixed cost to increase. C. average variable cost to increase. Solution: C. If marginal cost is greater than average total cost, then increasing output will cause marginal, average variable, and average total costs to increase. Average fixed cost will continue to decrease as output increases. 1-8 Q-2. Upsilon Natural Gas, Inc. is a monopoly enjoying very high barriers to entry. Its marginal cost is $40 and its average cost is $70. A recent market study has determined the price elasticity of demand is 1.5. The company will most likely set its price at: A. $40. B. $70. C. $120. Solution: C. Profits are maximized when MR = MC. For a monopoly, MR=P(1-1/E ). Setting this equal to MC p and solving for P: $40= P(1-1/1.5)=P×0.333 P=$120 2-8 Q-3. If relative to prior values of their respective indicators the inventory—sales ratio has risen, unit labor cost is stable, and real personal income has decreased, it is most likely that a peak in the business cycle: A. has occurred. B. is just about to occur. C. will occur sometime into the future. Solution: A. Both inventory—sales and unit labor costs are lagging indicators that decline somewhat after a peak. Real personal income is a coincident indicator that by its decline shows a slowdown in business activity. 3-8 Q-4. The following data apply to a country in its domestic currency units: Consumer spending on goods and services Business gross fixed investment Government spending on goods and services 875,000 286,000 305,000 84,000 Government gross fixed investment Change in inventories Transfer payments Exports -68,000 9,000 Capital consumption allowance Statistical discrepancy Imports 8,500 -2,800 219,000 250,000 Using the expenditures approach, the country’s gross domestic product (GDP) is closest to: A. 1,448,200. B. 1,451,500. C. 1,466,490. Solution: A. Usi