What is the median of 26, 30, 24, 32, 32, 31, 27 and 29?

• A.29.5
• B.29
• C.30

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For a monopoly earning economic losses, the demand curve

• A.is below the average total cost curve at every level of output.
• B.is tangent to the average total cost curve at every level of output.
• C.none of the above are correct because a monopoly firm cannot earn economic losses.

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According to CFA Institute's Standards of Professional Conduct, the following is procedure for compliance for one of the Standards of Professional Conduct:
Members should report any beneficial interest that they may have in any corporate directorships, trustee positions, or any other relationships that could pose a conflict of interest with their responsibilities to their employers.
Which Standard of Professional Conduct do these compliance procedures relate to?

• A.Standard I (A) - Professionalism - Independence and Objectivity.
• B.Standard IV (B) - Duties to Employers - Additional Compensation Arrangements.
• C.Standard VI (A) - Conflicts of Interest - Disclosure of conflicts.

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Assume a small country imposes tariff.

After the tariff, the producer surplus will:

• A.decrease by B
• B.increase by B
• C.decrease by B + C

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You can enter a derivative contract that will pay $100 at the end of a year if the price of corn exceeds
$ 3 per bushel, or $50 if it is equal to $3 per bushel or lower. The probability that corn will exceed $3 by the end of one year is 50%. The current price of the contract is $60, and interest is 5% per year. What is the optimal strategy?

• A.Buy $3 per bushel worth of corn futures.
• B.Enter into the derivative contract for a cost of $60.
• C.Invest $60 at 5% until the end of the year.

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