Topic 3 of 10 • CFA Level 1

Economics

Micro and macroeconomics, international trade

8
Subtopics
30
Learning Outcomes
6-9%
Exam Weight

Topic Overview

Economics is one of the 10 major topic areas in the CFA Level 1 curriculum, representing approximately 6-9% of the exam. This topic area covers 8 key subtopics that form the foundation of economics knowledge required for investment professionals.

Understanding economics is essential for CFA candidates as it provides the fundamental concepts needed to analyze financial markets and make informed investment decisions. This topic area includes 30 specific learning outcomes that candidates must master for the exam.

Subtopics in Economics

1

The Firm and Market Structures

5 learning outcomes

2

Understanding Business Cycles

3 learning outcomes

3

Fiscal Policy

4 learning outcomes

4

Monetary Policy

4 learning outcomes

5

Introduction to Geopolitics

6 learning outcomes

6

International Trade

3 learning outcomes

7

Capital Flows and the FX Market

3 learning outcomes

8

Exchange Rate Calculations

2 learning outcomes

Study Tips for Economics

Recommended Approach

  • • Start with understanding key concepts before memorizing formulas
  • • Practice calculations with real-world examples
  • • Review learning outcomes to ensure complete coverage
  • • Take topic-specific practice quizzes regularly

Key Focus Areas

  • • Understand how this topic connects to other CFA areas
  • • Focus on high-weight subtopics for maximum impact
  • • Review past exam questions for this topic
  • • Create summary notes for quick revision

Ready to Master Economics?

Practice with our comprehensive question bank featuring questions on all 8 subtopics and 30 learning outcomes.