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Free CFA Economics Practice Questions & Answers

2,050 exam-style Economics questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 1501

A classic example of overinvestment during slowdown is:

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Question 1502

In contraction, new capital orders are typically:

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Question 1503

In contraction, existing capital orders may be:

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Question 1504

Initial cutbacks in capital spending during contraction:

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Question 1505

In contraction, maintenance spending is usually:

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Question 1506

In contraction, the first equipment category cut is usually:

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Question 1507

In recovery, capital spending focuses on:

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Question 1508

In expansion, orders for heavy equipment:

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Question 1509

In slowdown, companies may still place new orders because:

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Question 1510

In contraction, cuts in heavy equipment spending:

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Question 1511

Inventory fluctuations occur because:

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Question 1512

The inventory–sales ratio measures:

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Question 1513

Analysts monitor inventories because they:

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Question 1514

In recovery, the inventory–sales ratio typically:

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Question 1515

In expansion, the inventory–sales ratio is usually:

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Question 1516

In slowdown, the inventory–sales ratio:

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Question 1517

In contraction, the inventory–sales ratio:

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Question 1518

In expansion, production rises quickly to:

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Question 1519

In slowdown, inventories rise because:

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Question 1520

Leading indicators are useful because they:

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Question 1521

Coincident indicators are useful because they:

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Question 1522

Lagging indicators are useful because they:

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Question 1523

A composite indicator is:

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Question 1524

Composite indicators are used because:

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Question 1525

The Conference Board LEI is:

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Question 1526

The LEI uses the classical business cycle concept because:

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Question 1527

A leading indicator turns:

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Question 1528

A coincident indicator turns:

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Question 1529

A lagging indicator turns:

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Question 1530

Inventory rebuilding typically occurs during:

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Free CFA Economics Practice Questions & Answers

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Before you go, can we ask you one thing?

Thank you