If a firm hires labor for $4,000, pays rent of $1,500, buys raw materials for $6,000 from another firm, earns profits of $500, and sells its output for $14,000, the value added by the firm is _____
a. $12,000
b. $8,000
c. $6,000
d. $2,000
e. $500
b
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Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $30 million. Bank reserves are equal to
A) $2 million. B) $3 million. C) $5 million. D) $10 million.
Which statement is true?
A. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for free trade. B. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for protection. C. Dollars are used for all international transactions. D. None of these statements are true.
Large income differences will be eradicated if the market mechanism is working well
a. True b. False Indicate whether the statement is true or false
If the marginal product of labor is greater than the average product of labor, then the
A. marginal product must be increasing. B. marginal product must be decreasing. C. average product must be increasing. D. average product must be decreasing.