CEA Study Guide 2026
Everything you need to pass the CEA exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CEA Exam Format at a Glance
📚 CEA Topics to Study (69)
✍️ Sample CEA Questions & Answers
1. An optimal currency area (OCA) theory, developed by Robert Mundell, suggests that a common currency is beneficial when member regions have:
OCA theory holds that a currency union works best when regions face symmetric shocks and factors can move freely to facilitate adjustment without exchange rate tools.
2. Which of the following best describes the concept of 'opportunity cost'?
Opportunity cost represents what is sacrificed — the value of the best alternative not chosen — rather than just money paid.
3. A tariff-rate quota (TRQ) allows imports:
A TRQ charges a lower (or zero) tariff on imports up to a specified quantity and a higher tariff on any imports exceeding that threshold.
4. When a firm's marginal revenue equals zero, which of the following is true about demand elasticity?
When MR = 0, total revenue is maximized, which occurs at the unit-elastic point on a linear demand curve.
5. Which of the following best describes heteroskedasticity in a regression model?
Heteroskedasticity means the spread (variance) of residuals is not constant and often increases or decreases with the magnitude of an explanatory variable.
6. Efficiency wage theory suggests that firms pay workers above the market-clearing wage primarily because:
Efficiency wage theory holds that above-equilibrium wages motivate workers to avoid dismissal, reduce costly turnover, and attract higher-quality applicants.