CFA® Level I Exam Economics Practice Questions

Economics is 6–9% of the CFA® Level I exam and is tested in session 1. Practice original questions on firms and markets, the macro economy, policy, trade and currencies, including the exchange-rate calculations.

Take the full timed Level I mock exam

180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 13 of the 180 questions are economics.

Or try the free economics drill
  • 46 original economics questions with worked answers
  • 6–9% of the exam under the 2027 curriculum, session 1
  • 13 of the 180 questions in our full mock
Free sample · Question 1 of 3Economics

Several countries remove all tariffs on trade among themselves and adopt a common tariff on imports from nonmember countries, but they do not allow free movement of labor and capital among members. This arrangement is best described as a:

What our economics questions cover

  • Perfect competition, monopolistic competition, oligopoly and monopoly; profit maximization where marginal revenue equals marginal cost
  • Breakeven and shutdown points, economies of scale and concentration measures such as the Herfindahl–Hirschman index
  • Phases of the business cycle, credit cycles and economic indicators
  • Fiscal policy tools and multipliers; monetary policy tools, transmission and the neutral rate
  • Geopolitical actors, cooperation and competition, and geopolitical risk
  • Comparative advantage, tariffs, quotas, trading blocs and the balance of payments
  • Spot and forward exchange rates, cross rates and covered interest rate parity
Line drawing of a desk globe, a small factory, a stack of shipping containers, coins and banknotes

This list is our own summary of the topic, written for practice. The official topic outline and learning outcomes are published by CFA Institute for registered candidates.

Drill economics, then sit the full mock

Take the full timed Level I mock exam

180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 13 of the 180 questions are economics.

Or try the free economics drill

Ideas the questions test most

  1. Every firm maximizes profit where marginal revenue equals marginal cost. In perfect competition price equals marginal revenue; a monopolist’s marginal revenue is below price.
  2. In the short run a firm keeps operating while price covers average variable cost; it shuts down when price falls below it.
  3. Expansionary fiscal policy raises spending or cuts taxes; expansionary monetary policy lowers the policy rate or adds reserves. Fiscal and monetary policy can work together or against each other.
  4. Under covered interest rate parity, the currency with the higher interest rate trades at a forward discount.
  5. A country has a comparative advantage in a good when its opportunity cost of producing it is lower than the other country’s, even if it has no absolute advantage.

Start the free economics drill · Full Level I mock exam · Mixed drill

Common questions

How much economics is on the CFA Level I exam?

Economics is 6–9% of the Level I exam under both the 2026 and the 2027 curriculum, tested in session 1.

Are there calculations in Level I economics?

Yes. The calculation questions are mostly exchange rates (cross rates, forward rates from interest rate parity, percentage changes), concentration ratios and profit-maximizing output. The rest test concepts and their direction of effect.

Take the full timed Level I mock exam

180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 13 of the 180 questions are economics.

Or try the free economics drill

More Level I topics

Topic weights and exam format: CFA Institute: Level I exam (format and topic weights), checked November 2026.

Game Assessment Prep is an independent practice site. It is not affiliated with, endorsed by or a prep provider of CFA Institute, and CFA Institute does not endorse, promote or warrant the accuracy of these questions. Every question is original; none is taken from CFA Institute materials.

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