I don’t mind studying for the CFA the majority of the time because the material is useful and applicable, but with microecon, I get terribly bored after reading even a page and I don’t know what to do about it.
Not only is the material useless for the most part, but it’s also full of assumptions and perfect scenarios that are so unrealistic and arbitrary that it just makes me angry. And then for every one of the graphs, you have price on the vertical axis and quantity on the horizontal axis which is so counterintuitive and annoying.
Although this post is partly to vent, how does one stay interested in studying this material when it is boring, useless, and often so arbitrary? Can any of it be applied?
Microeconomics is useful, everythng is useful, believe me.
This theories are basic, so you need to learn this first in order to go ahead with more advanced theories. CFAI economics on level 1 is about the 1 first year of an average college economics career
I don’t think they are arbitrary at all, they are simplistic in fact. The assumptions make our lives easier. When you became a master in economics you will be able to relax this assumptions and start playing with 10 variables at once. But if you get problems with price and quantity, maybe Economics will never be your strenght.
Is boring at first, but if you get the logic behind it, you will start enjoying it.
Same happening with me, its too boring… And specially evrything is what i have already studies in my 12th grade. Just not able to recollect. Feel like sleeping when studying. So inbetween i see tutorials from youtube and khan academy.
i find the information much more interesting in econ then accounting mainly because i don’t want to be preparing 10-ks after getting my CFA
a lot of general business concepts can be used with the econ fundamentals. knowing how to prepare a cash flow statement using the indirect method well…might be useful one day
A lot of the material in the CFA program assumes perfect and unrealistic scenarios, so get used to it. As far as getting past the boredom, I always just did practice problems for those areas rather than reading. Ideally the QBank to mix it up and get a quick explanation or the rationale.
Price ceiling is the highest price a good or service can be. For example, rent controlled apartments have a price cieling (rent is capped at a certain amount).
For simplicity, let’s say the equilibrium price of rent is $1000 (an equilibrium price without the price ceiling). The price ceiling is set at $1,200. The price ceiling is ineffective at the point because rent hasn’t reached $1,200. In this case, the price ceiling is higher than the equilibrium price.
(Part 2)
All of a sudden there are rent hikes; the equilibrium price (without the price ceiling) is $1,300. However, since there is a price ceiling of $1,200 (the maximum that can be charged for rent), the rent is capped at $1,200. In this case, the price celing is effective because it is lower than the equilibrium price (without the price ceiling).
