Page 3 of 42 FirstFirst 1234513 ... LastLast
Results 21 to 30 of 419

Thread: FREE CFA Level 1 sample questions everyday for December 2010 candidates

  1. #21
    Senior Member
    Join Date
    Sep 2009
    Posts
    145
    Rep Power
    10
    Answer should be C.
    For efficient resource allocation, the Quantity of Product supplied = Quantity of Product consumed.
    In many cases there may be Consumer Surplus or Producer surplus, but it will be efficient only when the sum of both is maximized. In that case it is assumed that efficient resource allocation is done.

  2. #22
    Junior Member
    Join Date
    Mar 2010
    Posts
    13
    Rep Power
    8
    Quote Originally Posted by optimisticAL View Post
    Answer should be C.
    For efficient resource allocation, the Quantity of Product supplied = Quantity of Product consumed.
    In many cases there may be Consumer Surplus or Producer surplus, but it will be efficient only when the sum of both is maximized. In that case it is assumed that efficient resource allocation is done.
    I agree with this explanation...seems right...will wait for the answer from the DG team

  3. #23
    Active Member
    Join Date
    Jul 2010
    Posts
    25
    Rep Power
    8
    Q#3 Answer: (C) Resources are allocated efficiently when the sum of consumer and producer surplus is maximized.
    ================================================== ================================================== =======
    Today's Q (Questions and answers provided by Elan Guides)

    Q#4: As the marginal benefit curve becomes more elastic, assuming that equilibrium price and quantity remain unchanged, consumer surplus:

    A. Increases
    B. Remains unchanged
    C. Decreases
    ================================================== ================================================== =======

  4. #24
    Senior Member
    Join Date
    Jul 2009
    Posts
    117
    Rep Power
    10
    Quote Originally Posted by Shailesh Otari View Post
    Q#3 Answer: (C) Resources are allocated efficiently when the sum of consumer and producer surplus is maximized.
    ================================================== ================================================== =======
    Today's Q (Questions and answers provided by proavenues.com)

    Q#4: As the marginal benefit curve becomes more elastic, assuming that equilibrium price and quantity remain unchanged, consumer surplus:

    A. Increases
    B. Remains unchanged
    C. Decreases
    ================================================== ================================================== =======
    I think it's A.

  5. #25
    Senior Member
    Join Date
    Sep 2009
    Posts
    145
    Rep Power
    10
    Yaa...its A

  6. #26
    Junior Member
    Join Date
    Aug 2010
    Posts
    1
    Rep Power
    0
    I think its C ...
    Since MB becomes more elastic .. then its curve will tend to be more horizontal... thus decreasing consumer surplus... Pls Correct me If i am wrong...

  7. #27
    Active Member
    Join Date
    Aug 2009
    Posts
    22
    Rep Power
    9
    Quote Originally Posted by deep_cfa View Post
    I think its C ...
    Since MB becomes more elastic .. then its curve will tend to be more horizontal... thus decreasing consumer surplus... Pls Correct me If i am wrong...
    I agree with Deep and it seems C is the right answer.

  8. #28
    Active Member
    Join Date
    Jul 2010
    Posts
    25
    Rep Power
    8
    Q#4 Answer: (C) As the marginal benefit curve becomes more elastic (becomes flatter), the area of the triangle between the y-axis, the market price and the demand curve decreases (assuming equilibrium price and quantity remain unchanged).
    ================================================== ==================================================
    Today's Q (Questions and answers provided by Elan Guides)

    Q#5: A subsidy most likely:

    A. Shifts the demand curve to the right
    B. Leads to a dead weight loss from underproduction
    C. Leads to a dead weight loss from overproduction

    ================================================== ==================================================

  9. #29
    Senior Member
    Join Date
    Aug 2009
    Posts
    110
    Rep Power
    10
    I think there will be underproduction. So it's B.

    I am not receiving mails daily. What do I need to do to get email updates everyday?

  10. #30
    Junior Member
    Join Date
    Nov 2009
    Posts
    8
    Rep Power
    9
    Can u plz explain how d answer is 'A'..??

Similar Threads

  1. Free CFA Level 1 Practice Questions for December 2012 exam
    By ratankv in forum CFA exam conducted by CFA Institute, USA
    Replies: 75
    Last Post: 30-11-2012, 03:54 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •