IFT Economics Practice Questions

[Arif Irfanullah]

Find attached a couple of IFT Economics practice quizzes.   If you have comments about any of the questions please post over here.  All the questions have not been rigorously tested/reviewed yet… so there might be some typos.

There are many smart people on this forum who are taking the Level I exam in December.  I’d strongly encourage you help each other.

For Economics it is particularly important that you go over the examples and practice problems in the curriculum.  These questions are the best indication of what you might see on the exam. 

Over the next few days we will post quizzes for other topics as well.

Practice, Practice, Practice. That is the key to success.

[Ilyas Abdulin]

Mr. Irfanullah,

Please take a look at questions 20 and 23. I think in question 20 the answer should be A(not C). And for question 23 the answer should be B(not C) - answer explanation is also a bit wrong, because as I understand it Common markets include Custom Union, but Custom Union does not necessarily include Common Markets.

Also in question 26, it says MRSyz in one place in stead of MRSyx. 

Please correct me if I am wrong,

Thank you,

Ilyas

[Arif Irfanullah]

Very good job, Ilyas. You are right on all three counts.

Updated quiz and solution attached.

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[Sannidhya Narayan]

I think for the question 20 the earlier answer was correct, the tax on the seller per unit will force the MC curve of the sellers to shift towards left which is the supply curve causing lower output. Whereas ceiling price does not necessarily reduce the equilibrium output as in case of ceiling price above current market price. Arif Sir please let us know the correct approach.

Thanks

On Sunday, November 17, 2013 8:26:45 PM UTC+5:30, Arif Irfanullah wrote:

Very good job, Ilyas. You are right on all three counts.

Updated quiz and solution attached.

On Sun, Nov 17, 2013 at 9:16 AM, Ilyas Abdulin <hurric...@gmail.com> wrote:

Mr. Irfanullah,

Please take a look at questions 20 and 23. I think in question 20 the answer should be A(not C). And for question 23 the answer should be B(not C) - answer explanation is also a bit wrong, because as I understand it Common markets include Custom Union, but Custom Union does not necessarily include Common Markets.

Also in question 26, it says MRSyz in one place in stead of MRSyx. 

Please correct me if I am wrong,

Thank you,

Ilyas

On Saturday, November 9, 2013 6:47:32 AM UTC-5, Arif Irfanullah wrote:

Find attached a couple of IFT Economics practice quizzes.   If you have comments about any of the questions please post over here.  All the questions have not been rigorously tested/reviewed yet… so there might be some typos.

There are many smart people on this forum who are taking the Level I exam in December.  I’d strongly encourage you help each other.

For Economics it is particularly important that you go over the examples and practice problems in the curriculum.  These questions are the best indication of what you might see on the exam. 

Over the next few days we will post quizzes for other topics as well.

Practice, Practice, Practice. That is the key to success.

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[Arif Irfanullah]

Shortage means that Demand > Supply.  This is most likely to happen with a price ceiling.

If supply and or demand shift such that equilibrium quantity is lower, that does not mean that we have a shortage.

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