Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$.50Friendly Groceries$4.00$2.50What is the value added of Friendly Groceries?
A. $4.00
B. $2.50
C. $1.50
D. $3.50
Answer: C
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In the short run, macroeconomic analysis focuses on ________, while in the long run, the focus is on ________
A) fiscal policy; monetary policy B) short-run economic growth; population demographics C) unemployment; inflation D) the business cycle; long-run economic growth
When a national security crisis forces the government to draft workers, this often results in price increases because the supply curves of most goods shift to the left. The people who suffer the price-increase consequences mostly are
a. those who are drafted b. farm goods suppliers because they have less to supply c. consumers of farm goods because farm goods are basic goods d. the rich because they can afford to pay the higher prices, but they pay substantially more e. the poor because they are priced out of the markets
The level of total spending is the immediate determinant of the:
A. ratio of private to public goods production. B. level of real output and employment. C. inflation rate. D. size of the labor force.
According to the life-cycle theory of consumption, people tend to consume less than they earn during their main working years.
Answer the following statement true (T) or false (F)