If a firm bakes cookies and sells them for $1,000 while spending $100 on sugar, $150 on chocolate, $50 on other supplies, $300 on wages and $400 on rent, what is its value added?
a. $300
b. $0
c. $700
d. $200
e. $400
C
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Suppose a commercial banking system has $240,000 of outstanding checkable deposits and actual reserves of $85,000. If the reserve ratio is 25%, the banking system can expand the supply of money by a maximum of
A. $5,000. B. $25,000. C. $75,000. D. $100,000.
The most important international trade organization is
A) the World Bank. B) the World Trade Organization. C) the International Monetary Fund. D) the European Union.
How would the value of output produced at an American-owned factory in the United States and a foreign-owned factory in the United States be treated in GDP accounting?
What will be an ideal response?
One World View article is titled "Top Tax Rates." The lowest marginal tax rates in the world in 2015 were in
A. Monaco. B. France. C. Denmark. D. Canada.