A farmer grows wheat and sells it to a bakery for $5 . The bakery uses the wheat to bake bread and sells it to a distributor for $20 . The distributor sells the bread to a supermarket for $30, which then sells the bread to customers for $50 . Which of the following is true?
a. The value added by the distributor is $30
b. The value added by the supermarket is more than that added by the bakery.
c. GDP rises by $50 plus the value added at each stage of production.
d. Counting the value added at each stage instead of counting the final selling price creates a problem of double counting.
e. The value added by the farmer is $20 because the wheat, which is worth $5, is necessary for each of the three remaining stages of production.
a
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A) transfer payments B) government purchases C) net exports D) capital supply
IMF conditionality refers to the
A) technical assistance the IMF gives. B) minimum size of a national debt problem that a country must have before the IMF gets involved. C) minimum-sized loan the IMF will make. D) maximum-sized loan the IMF will make. E) changes a country must make in order to receive IMF financial assistance.
A portion of the balance of payments in which remaining outstanding claims are financed is known as the
a. current account. b. settlement account. c. capital account. d. balance of trade.
Discounting allows comparisons of
a. money values and physical values. b. interest payments on borrowed funds and interest payments on loaned funds. c. money values received at different times. d. the quantities of outputs produced by different types of capital goods.