The value of a producer's output minus the value of the inputs it purchases from other producers is called the producer's
A. surplus.
B. gross product.
C. value added.
D. profit.
Answer: C
You might also like to view...
One result of the public choice model is that most economists believe that
A) policymakers may have incentives to intervene in the economy in ways that do not promote economic efficiency. B) the voting paradox will prevent voters from selecting the best person for public office. C) when market failure occurs, government intervention will always lead to a more efficient outcome. D) government intervention will always result in a reduction in economic efficiency in regulated markets.
The advantage of a system of fixed exchange rates over one where exchange rates are flexible is that
a. the government gains more control over the economy. b. floating exchange rates impose risks on importers and exporters from unpredictable exchange rates. c. exchange controls become unnecessary. d. fiscal and monetary policy can focus more on domestic conditions.
Which is the most accurate statement?
A. The federal minimum hour wage rate puts millions of Americans above the poverty line. B. Most black families live below the poverty line. C. In 2008 the poverty rate was higher than it was in 2006. D. Welfare Reform basically eliminated poverty as a major socioeconomic problem.
If the price of labor is $5 and the price of capital is $10, what is the marginal rate of technical substitution at the optimal input choice?
A. 0.5 B. decreasing C. 2 D. increasing E. none of the above