Level I · 2026 curriculum · 6–9% of the exam

Economics

Economics at Level I blends market structures and the firm with macroeconomics, policy, trade and currency exchange rates.

What the questions cover

• Perfect competition, monopolistic competition, oligopoly and monopoly
• Breakeven and shutdown decisions, and economies of scale
• Business cycles, inflation, unemployment and economic indicators
• Fiscal and monetary policy tools, and how they interact
• Geopolitical risk, international trade and capital flows
• Exchange-rate quotes, cross rates and forward rates

How to study it

• Be careful with currency quotes: know which currency is the price and which is the base.
• Link each policy action to its direction of effect before choosing an answer.