- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 3. Marginal Revenue, Marginal Cost and Profit Maximization
CFA Practice Question
If Gail's grade is currently a C and the grade she receives on her next exam is a B, ______
B. her overall grade will improve.
C. her marginal grade is less than her average grade.
A. her overall grade will fall or at least remain the same.
B. her overall grade will improve.
C. her marginal grade is less than her average grade.
Correct Answer: B
When the marginal grade (B) exceeds the average grade (C), the average grade will improve.
User Contributed Comments 7
| User | Comment |
|---|---|
| bahodir | There is a nice example with GPAs in Michael Parkin's "Economics" book (btw, this book is recommended by the CFA institute). I suggest you read that example to understand all kinds of costs. |
| julescruis | If only there was enough time.... |
| jassosahan | So very true |
| mwali | Time is really running out. |
| Beret | Nice question if you are not up to date with the grading system in the US. In europe we use real number for grading. |
| jpducros | Beret, remember when you were at nursery, I'm sure you received some A, B, C grades.....or what is D ? ;-) |
| schweitzdm | Is anyone able to provide a free link to the GPA example mentioned by @bahodir? |