Suppose an apple pie sells at a grocery store for $5. Suppose that the grocery store purchased it from a baking company for $4. Suppose the baking company paid $2 for ingredients, $1 for labor, and made $1 in profit. What is the GDP contribution of the pie?
A. It is $11.
B. It is $4.
C. It is $12.
D. It is $5.
Answer: D
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A) technology is exogenous B) technology is rival in its use C) capital and labor are physical things D) technology is a physical thing
Which of the following categories accounted for the lowest percent of the total federal government expenditures in recent years?
a. Income security. b. National defense. c. Education and health. d. Interest on the national debt.
"Crowding out" investment in supply side economics refers to a situation in which groups of investors compete with each other, thereby driving up interest rates
Indicate whether the statement is true or false
For Say's law to hold in a money economy,
A) funds invested must give rise to an equal amount of funds spent. B) funds saved must give rise to an equal amount of funds invested. C) funds spent must give rise to an equal amount of output produced. D) interest rates must fall when saving decreases. E) b and c