Question

1. Once an idea enters society's pool of knowledge, the idea becomes a

	a.	private good.
	b.	societal good.
	c.	proprietary good.
	d.	public good.

2. Miller’s Dairy produces 960 gallons of milk per day. Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour. If the Dairy’s productivity is 12 gallons of milk per hour of labor, then how many milkers does the shop employ?

	a.	120
	b.	8
	c.	10
	d.	80

3. A certain production process requires only two types of inputs — capital and labor. In 2006, 100 units of labor and 50 units of capital were employed, and 100 units of output were produced. In 2013, 112 units of labor and 56 units of capital were employed. If the production process displays constant returns to scale, then how many units of output were produced in 2013?

	a.	100
	b.	112
	c.	124
	d.	144

4. Which of the following statements is correct?

	a.	A mutual fund is a financial market.
	b.	On average, managed funds outperform indexed funds.
	c.	A large, well-known corporation such as Intel generally would use financial intermediation to finance expansion of its facilities.
	d.	Unlike corporate bonds and stocks, checking accounts are a medium of exchange.

Answer 1

Answer:

1]

Once an idea enters society's pool of knowledge, the idea becomes a public good.

D] Public good.

2]

C] 10

Explanation: Total amount of milk produced = 960 gallons/ day

Number of hours worked = 8hrs /day

Productivity of a worker = 12 gallon/day

Man hours need to produce 960 gallons = Total Product / Productivity

= 960/12

= 80 man hrs.

Workers employed = Number of man hrs / number of hrs worked

= 80 / 8 = 10 workers.

3]

B] 112 units

The % increase of labour from 2006 to 2013, (112-100)/100*100 = 12%

% increase of capital from 2006 to 2013, (56-50)/50*100 = 12%.

So, the output would also increase by 12%.

Output = 100 + 12% = 112 units.

4]

D] Unlike corporate bonds and stocks, checking accounts are a medium of exchange.