# on 22-Sep-2015 (Tue)

#### Flashcard 150897477

Tags
#finance #steiner-mastering-financial-calculations-3ed
Question
For interest rate futures, prices are quoted in units of [...]. This minimum movement is called a tick.
0.005 (half a basis point - mind that "par" price is 100)

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
For interest rate futures, prices are quoted in units of 0.005. This minimum movement is called a tick.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916340

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser A utility function is of the form utility = U(QA, QB, ... ,QN), where the variables are quantities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one always results in greater utility. This is referred to as the condition of non-satiation.

#### pdf

cannot see any pdfs

#### Flashcard 150916347

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A [...] is of the form u = U(QA, QB, ... ,QN), where the variables are quantities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one always results in greater utility.
utility function

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
A utility function is of the form utility = U(Q A , Q B , ... ,Q N ), where the variables are quantities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and tha

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916356

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A utility function is of the form utility = U(QA, QB, ... ,QN), where the variables are [...] A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one always results in greater utility.
quantities consumed of goods

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
A utility function is of the form utility = U(Q A , Q B , ... ,Q N ), where the variables are quantities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one always results in greater utility.</

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916365

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A utility function is of the form utility = U(QA, QB, ... ,QN), where the variables are quantities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one [...] utility.
always results in greater

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
f the form utility = U(Q A , Q B , ... ,Q N ), where the variables are quantities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one <span>always results in greater utility.<span><body><html>

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916377

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A utility function is of the form utility = U(QA, QB, ... ,QN), where the variables are quantities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one always results in greater utility. This is referred to as the condition of [...].
non-satiation (all other things being equal, more is better than less)

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
tities consumed of goods A through N. We assume that no quantities are negative (some may be zero), and that holding all other quantities constant while increasing one always results in greater utility. This is referred to as the condition of <span>non-satiation.<span><body><html>

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916386

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Utility is an ordinal measure, rather than a cardinal measure. What does it mean?
We can say which bundle is more satisfying (order of bundles), but we cannot say by how much.

status measured difficulty not learned 37% [default] 0

#### pdf

cannot see any pdfs

#### Annotation 150916395

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Indifference curves plot the combinations of two goods that provide equal utility to a consumer.

#### pdf

cannot see any pdfs

#### Flashcard 150916399

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves plot the combinations of two goods that provide equal [...] to a consumer.
utility

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves plot the combinations of two goods that provide equal utility to a consumer.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916405

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have more of GoodY for the two to have equal utility and lie on the same indifference curve.

#### pdf

cannot see any pdfs

#### Flashcard 150916409

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves for two goods slope [downward or upward?]: A bundle of goods with less of Good X must have more of GoodY for the two to have equal utility and lie on the same indifference curve.
downward

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have more of GoodY for the two to have equal utility and lie on the same indifference curve.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916418

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have [less or more?] of GoodY for the two to have equal utility and lie on the same indifference curve.
more

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have more of GoodY for the two to have equal utility and lie on the same indifference curve.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916427

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have more of GoodY for the two to have equal [...] and lie on the same indifference curve.
utility

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have more of GoodY for the two to have equal utility and lie on the same indifference curve.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916433

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have more of GoodY for the two to have [...] utility and lie on the same indifference curve.
equal

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves for two goods slope downward: A bundle of goods with less of Good X must have more of GoodY for the two to have equal utility and lie on the same indifference curve.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916439

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Indifference curves are convex towards the origin: Convexity results when the magnitude of the slope decreases as we move toward more of Good X and less of GoodY.

#### pdf

cannot see any pdfs

#### Flashcard 150916443

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves are [convex/concave] towards the origin: Convexity results when the magnitude of the slope decreases as we move toward more of Good X and less of GoodY.
convex

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves are convex towards the origin: Convexity results when the magnitude of the slope decreases as we move toward more of Good X and less of GoodY.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916452

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves are convex [towards/away from] the origin: Convexity results when the magnitude of the slope decreases as we move toward more of Good X and less of GoodY.
towards

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves are convex towards the origin: Convexity results when the magnitude of the slope decreases as we move toward more of Good X and less of GoodY.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916461

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Indifference curves are convex towards the origin: Convexity results when the magnitude of the slope [increases/decreases] as we move toward more of Good X and less of GoodY.
decreases

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Indifference curves are convex towards the origin: Convexity results when the magnitude of the slope decreases as we move toward more of Good X and less of GoodY.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916470

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser The slope of an indifference curve at any point is referred to as the marginal rate of substitution (MRS), the rate at which the consumer will willingly exchange units of Good X for units of Good Y.

#### pdf

cannot see any pdfs

#### Flashcard 150916474

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The slope of an indifference curve at any point is referred to as the [...], the rate at which the consumer will willingly exchange units of Good X for units of Good Y.
marginal rate of substitution (MRS)

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The slope of an indifference curve at any point is referred to as the marginal rate of substitution (MRS), the rate at which the consumer will willingly exchange units of Good X for units of Good Y.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916480

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser The characteristic convexity of indifference curves towards the origin reflects a diminishing marginal rate of substitution.

#### pdf

cannot see any pdfs

#### Flashcard 150916487

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The characteristic convexity of indifference curves towards the origin reflects a [...] marginal rate of substitution.
diminishing

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The characteristic convexity of indifference curves towards the origin reflects a diminishing marginal rate of substitution.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916493

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The characteristic convexity of indifference curves towards the origin reflects a diminishing [...].
marginal rate of substitution

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The characteristic convexity of indifference curves towards the origin reflects a diminishing marginal rate of substitution.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916499

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Can indifference curves cross?
No.

status measured difficulty not learned 37% [default] 0

#### pdf

cannot see any pdfs

#### Annotation 150916508

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just tangent to the budget line.

#### pdf

cannot see any pdfs

#### Flashcard 150916512

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
we represent a consumer 's [...], the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just tangent to the budget line.
equilibrium bundle of goods

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just tangent to the budget line.</spa

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916518

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the [...] is just tangent to the budget line.
highest attainable indifference curve

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just tangent to the budget line.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916524

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just [...] to the budget line.
tangent

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
>we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just tangent to the budget line.<html>

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916530

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just tangent to the [...].
budget (constraint) line

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
dy>we represent a consumer 's equilibrium bundle of goods, the most preferred affordable combination of Good X and GoodY, as the point where the highest attainable indifference curve is just tangent to the budget line.<body><html>

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916536

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser When the price of Good X decreases, there is a substitution effect that shifts consumption towards more of Good X.

#### pdf

cannot see any pdfs

#### Flashcard 150916549

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
When the price of Good X decreases, there is a substitution effect that shifts consumption towards [...] of Good X.
more

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
When the price of Good X decreases, there is a substitution effect that shifts consumption towards more of Good X.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916555

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Because the total expenditure on the consumer's original bundle of goods falls when the price of Good X falls, there is also an income effect.

#### pdf

cannot see any pdfs

#### Flashcard 150916562

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Because the total expenditure on the consumer's [...] bundle of goods falls when the price of Good X falls, there is also an income effect.
original

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Because the total expenditure on the consumer's original bundle of goods falls when the price of Good X falls, there is also an income effect .

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916568

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Because the total expenditure on the consumer's original bundle of goods falls when the price of Good X falls, there is also [...].
an income effect

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Because the total expenditure on the consumer's original bundle of goods falls when the price of Good X falls, there is also an income effect .

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916574

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser the income effect can either increase or decrease consumption of a good that has fallen in price

#### pdf

cannot see any pdfs

#### Flashcard 150916581

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
the income effect [increases/decreases] consumption of a good that has fallen in price
can either increase or decrease

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
the income effect can either increase or decrease consumption of a good that has fallen in price

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916590

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser the substitution effect always increases the consumption of a good that has fallen in price.

#### pdf

cannot see any pdfs

#### Flashcard 150916597

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
the substitution effect [increases/decreases] the consumption of a good that has fallen in price.
always increases

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
the substitution effect always increases the consumption of a good that has fallen in price.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916606

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser The substitution effect is positive, and the income effect is also positive- consumption of Good X will increase.

#### pdf

cannot see any pdfs

#### Flashcard 150916610

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The substitution effect is positive, and the income effect is also positive- consumption of Good X will [...].
increase

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The substitution effect is positive, and the income effect is also positive- consumption of Good X will increase.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916616

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser The substitution effect is positive, and the income effect is negative but smaller than the substitution effect-consumption of Good X will increase.

#### pdf

cannot see any pdfs

#### Flashcard 150916620

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The substitution effect is positive, and the income effect is negative but smaller than the substitution effect-consumption of Good X will [...].
increase

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The substitution effect is positive, and the income effect is negative but smaller than the substitution effect-consumption of Good X will increase.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916626

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will decrease. These kind of goods are called Giffen goods and they are clearly inferior goods.

#### pdf

cannot see any pdfs

#### Flashcard 150916630

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will [...]
decrease

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will decrease

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916636

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser A Veblen good is one for which a higher price makes the good more desirable.

#### pdf

cannot see any pdfs

#### Flashcard 150916640

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A [...] good is one for which a higher price makes the good more desirable.
Veblen

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
A Veblen good is one for which a higher price makes the good more desirable.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916646

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A Veblen good is one for which a higher price makes the good [less or more?] desirable.
more

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
A Veblen good is one for which a higher price makes the good more desirable.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916655

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser A normal good is one for which the income effect is positive

#### pdf

cannot see any pdfs

#### Flashcard 150916659

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A normal good is one for which the income effect is [...]
positive

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
A normal good is one for which the income effect is positive

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916668

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will decrease. These kind of goods are called [...] goods and they are clearly inferior goods.
Giffen

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will decrease. These kind of goods are called Giffen goods and they are clearly inferior goods.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916674

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will decrease. These kind of goods are called Giffen goods and they are clearly [normal or inferior?] goods.
inferior

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
head><head>The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will decrease. These kind of goods are called Giffen goods and they are clearly inferior goods.<html>

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916683

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Existence of which goods is described by rules of consumer choice (indifference function, budget constraint line): Veblen or Giffen?
Giffen (the inferior ones); Veblen goods like Gucci bags are not described by these rules of consumer choice.

status measured difficulty not learned 37% [default] 0

#### pdf

cannot see any pdfs

#### Annotation 150916692

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser A decrease in the price of a good that a consumer purchases leaves her with unspent income (for the same combination of goods). The effect of this additional income on consumption of the good for which the price has decreased is termed the income effect.

#### pdf

cannot see any pdfs

#### Flashcard 150916699

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
A decrease in the price of a good that a consumer purchases leaves her with unspent income (for the same combination of goods). The effect of this additional income on consumption of the good for which the price has decreased is termed [...].
the income effect

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
>A decrease in the price of a good that a consumer purchases leaves her with unspent income (for the same combination of goods). The effect of this additional income on consumption of the good for which the price has decreased is termed the income effect.<span><body><html>

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916705

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser accounting profit = total revenue- total accounting (explicit) costs

#### pdf

cannot see any pdfs

#### Flashcard 150916709

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
[...] = total revenue- total accounting (explicit) costs
accounting profit

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
accounting profit = total revenue- total accounting (explicit) costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916715

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
accounting profit = [...]- total accounting (explicit) costs
total revenue

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
accounting profit = total revenue- total accounting (explicit) costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916721

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
accounting profit = total revenue- [...]
total accounting (explicit) costs

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
accounting profit = total revenue- total accounting (explicit) costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916727

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Accounting profit may be referred to as net income, net profit, net earnings, or the bottom line (of the firm's income statement).

#### pdf

cannot see any pdfs

#### Flashcard 150916734

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
[...] may be referred to as net income, net profit, net earnings, or the bottom line (of the firm's income statement).
Accounting profit

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Accounting profit may be referred to as net income, net profit, net earnings, or the bottom line (of the firm's income statement).

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916740

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Accounting profit may be referred to as net income, net profit, net earnings, or [...] (of the firm's income statement).
the bottom line

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Accounting profit may be referred to as net income, net profit, net earnings, or the bottom line (of the firm's income statement).

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916746

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Accounting costs are explicit costs that represent actual payments for the resources the firm uses in producing its output .

#### pdf

cannot see any pdfs

#### Flashcard 150916750

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Accounting costs are [...] costs that represent [...] payments for the resources the firm uses in producing its output .
explicit costs that represent actual payments

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Accounting costs are explicit costs that represent actual payments for the resources the firm uses in producing its output .

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916759

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Do accounting costs include the interest cost on debt financing?
Yes.

status measured difficulty not learned 37% [default] 0

#### pdf

cannot see any pdfs

#### Flashcard 150916768

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Do accounting costs include payments to the firm's equity owners as a return on their invested capital?
No.

status measured difficulty not learned 37% [default] 0

#### pdf

cannot see any pdfs

#### Annotation 150916777

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Economic profit is also referred to as abnormal profit.

#### pdf

cannot see any pdfs

#### Flashcard 150916781

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
[...] profit is also referred to as abnormal profit.
Economic

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Economic profit is also referred to as abnormal profit.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916787

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Economic profit is also referred to as [...] profit.
abnormal

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Economic profit is also referred to as abnormal profit.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916793

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser economic (abnormal) profit = accounting profit - implicit opportunity costs

#### pdf

cannot see any pdfs

#### Flashcard 150916800

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
[...] = accounting profit - implicit opportunity costs
economic (abnormal) profit

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
economic (abnormal) profit = accounting profit - implicit opportunity costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916806

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
economic (abnormal) profit = [...] - implicit opportunity costs
accounting profit

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
economic (abnormal) profit = accounting profit - implicit opportunity costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916812

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
economic (abnormal) profit = accounting profit - [...]
implicit opportunity costs

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
economic (abnormal) profit = accounting profit - implicit opportunity costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916818

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser economic (abnormal) profit = total revenue - total economic costs

#### pdf

cannot see any pdfs

#### Flashcard 150916825

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
[...] = total revenue - total economic costs
economic (abnormal) profit

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
economic (abnormal) profit = total revenue - total economic costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916831

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
economic (abnormal) profit = [...] - total economic costs
total revenue

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
economic (abnormal) profit = total revenue - total economic costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Flashcard 150916837

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
economic (abnormal) profit = total revenue - [...]
total economic costs
which means explicit (aka accounting) cost + implicit cost

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
economic (abnormal) profit = total revenue - total economic costs

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916843

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser For publicly traded firms, implicit costs are typically only the opportunity cost of equity owners' investment in the firm.

#### pdf

cannot see any pdfs

#### Flashcard 150916847

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
For publicly traded firms, implicit costs are typically only [...].
the opportunity cost of equity owners' investment in the firm

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
For publicly traded firms, implicit costs are typically only the opportunity cost of equity owners' investment in the firm.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916853

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser Implicit costs are the opportunity costs of resources supplied to the firm by its owners.

#### pdf

cannot see any pdfs

#### Flashcard 150916857

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Implicit costs are the [...] of resources supplied to the firm by its owners.
opportunity costs

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Implicit costs are the opportunity costs of resources supplied to the firm by its owners.

#### Original toplevel document (pdf)

cannot see any pdfs

#### Annotation 150916863

 #2015 #book-2 #cfa #cfa-level-1 #economics #schweser For private firms, the implicit costs may include the opportunity cost of owner- supplied capital and the opportunity cost of the time and entrepreneurial ability of the firm's owners.

#### pdf

cannot see any pdfs

#### Flashcard 150916870

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
For private firms, the implicit costs may include the opportunity cost of owner- supplied capital and the opportunity cost of the [...] of the firm's owners.