Firm a Operates 10 Hours Each Day, Producing 100 Parts/hour

question 14

Multiple Choice

Firm A operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts?

• A) less than 2 hours
• B) between 9 and 10 hours
• C) between 2 and 6 hours
• D) between 6 and 8 hours
• E) between 8 and 9 hours

---

Definitions:

M2

A measurement of the total amount of money available that encompasses physical currency, funds in checking accounts, and near-cash assets like savings accounts and money market funds.

Basic Money Supply

The total amount of liquid money available in the economy, including cash and easily accessible deposits.

M1

A category of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other liquid assets accessible for immediate spending.

Financial Intermediaries

Institutions that facilitate the channeling of funds between lenders and borrowers by accepting funds from lenders and loaning funds to borrowers.