Mock 2 - answers

#9 - D?

D it is

I’m not sure, but I read too much into that question. I thought she didn’t explain new growth properly. I didn’t see anything talking about an erosion of profits leading to new technology. It just said high profits lead to new tech. I would think D for both correct is accurate, not sure though.


What is the answer for Mock 2 - Question Number 8 ?


I thought the answer to question number 9 is C. I think in the solution, it states the productivity “counteracts” the tendency of diminishing returns, however in the N’Diarra said that the invesments will not be subject to the law of diminishing returns? So confused. Can anyone provide more light to this question.

sorry, i’m confusing you and myself. I chose D for 8 - she is correct to prove tax incentives and invest in education. and answer to 9, I chose, D. My thinking for 9 was, that in the item set, she said without technology, you will experience law of diminishing return. in asnwer, it says, technological advances results in an ever upward shifting prodctivity. counteracts the tendency of diminshing return.

19 - vesting period and requisite service period aren’t the same thing right? D?


Good question…Is the 1/3 increase in GDP per labor hour due to Law of DRreturns, or is it just “the way it is”.

in the capital budgeting question, one project had an intial outlay of 50,000 which included 5,000 for land. We compute the NPV off of the 50k, not 45 because we needed to buy the land, right? If we already owned the land then its a sunk cost, thus not included. comments…