Page 4 of 42 FirstFirst ... 2345614 ... LastLast
Results 31 to 40 of 419

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

  1. #31
    Senior Member
    Join Date
    Aug 2009
    Posts
    192
    Rep Power
    11
    Quote Originally Posted by Avnish View Post
    Can u plz explain how d answer is 'A'..??
    Which question number r u referring to?

  2. #32
    Active Member
    Join Date
    Aug 2010
    Posts
    35
    Rep Power
    9
    the answer is c.

    Subsidy is money paid by govt to producer. The supply surve shifts downward and decreases the price and increases the qty. therefore, marginal cost exceeds the marginal benefit.

  3. #33
    Senior Member
    Join Date
    Jun 2009
    Location
    Mumbai
    Posts
    83
    Rep Power
    12
    Quote Originally Posted by Nidhi Taleja View Post
    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?
    Nidhi,

    Please subscribe to this thread in order to receive daily emails. You can read the instructions here:
    http://www.daulatguru.com/finance-fo...full=1#post885

    If you have already subscribed (but still not receiving the emails), please check the bulk/spam folder in your mailbox.

    Also, please click "Settings" on the top of this page. Then click "List Subscriptions" on the left. Then check the box as shown below:


    Then click on "Selected Threads" (below) -> Daily, using email -> Go

    This should help in managing your subscriptions efficiently.

    Thanks,
    Sougata

  4. #34
    Senior Member
    Join Date
    Mar 2010
    Posts
    169
    Rep Power
    11
    Quote Originally Posted by nehakumaria View Post
    the answer is c.

    Subsidy is money paid by govt to producer. The supply surve shifts downward and decreases the price and increases the qty. therefore, marginal cost exceeds the marginal benefit.
    I agree with Neha...'C' seems logical.

  5. #35
    Active Member
    Join Date
    Jul 2010
    Posts
    25
    Rep Power
    9
    Q#5 Answer: (C) A subsidy shifts the supply curve to the right and results in a deadweight loss due to overproduction.
    ================================================== ======================================
    Today's question (Questions and answers provided by Elan Guides)

    Q#6: A tax on a good or service is least likely to:

    A. Increase the equilibrium quantity
    B. Decrease the equilibrium quantity
    C. Increase the equilibrium price

  6. #36
    Senior Member
    Join Date
    Sep 2009
    Posts
    145
    Rep Power
    11
    I think its 'A'.
    When tax is imposed on good or services, the supply curve shift to the left. This increase the equilibrium price whereas decreases equilibrium quantity. So what tax don't do is to increase equilibrium quantity.

  7. #37
    Junior Member
    Join Date
    Aug 2010
    Posts
    1
    Rep Power
    0

    Smile My Answer to Q6 is A

    Since with impose of taxes, the prices will increase which will lead to increase in prices and which also leads to decrease in quantity. So the least effected is the increase in equilibrium quantity. Hence my answer is A. Provide your feedbacks. Regards

  8. #38
    Junior Member
    Join Date
    Aug 2010
    Posts
    1
    Rep Power
    0
    Hello All,

    I am Anshul from ProAvenues.com and we represent Elan Guides in India. We are providing some of the questions that will be a part of the daily sample questions for Dec 2010 candidates.

    There was some confusion with regard to Q2 earlier. We checked with our Elan Guides team and here is our input:

    For the purposes of the CFA Program (and in most modern economics texts) the percentage changes in quantity demanded and price, which are required to calculate price elasticity of demand, are calculated based on AVERAGE and not ORIGINAL values in the denominator. If elasticity is calculated in this manner (based on average values) you get the same elasticity value regardless of whether prices move up to a particular level or down to the same level.

    Basically, the answer we provided is correct. For more information, you can either refer to the CFA Program curriculum or register on our website to get the free Economics ebook. http://www.elanguides.com/cfa/india

    We are also offering June 2011 early bird Ultimate Prep package with a provision to incorporate any changes made by the CFA institute in their curriculum. To know more details and the special discount for Indian students, you can reach us on: 09619 565 006.

    Best,
    Anshul

  9. #39
    Active Member
    Join Date
    Aug 2009
    Posts
    22
    Rep Power
    10
    Thank you Anshul for the clarification!

  10. #40
    Senior Member
    Join Date
    Aug 2009
    Posts
    108
    Rep Power
    11
    Quote Originally Posted by rahulgupta45 View Post
    Since with impose of taxes, the prices will increase which will lead to increase in prices and which also leads to decrease in quantity. So the least effected is the increase in equilibrium quantity. Hence my answer is A. Provide your feedbacks. Regards
    I agree with your logic...seems A is right.

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, 02:54 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
  •