If a local shop buys a used motorcycle for $1,000, makes repairs and refurbishes it, then resells it for $2,500, the
a. shop contributes value added equal to $1,500, but nothing is added to GDP.
b. shop contributes value added equal to $1,500, and consequently $1,500 is added to GDP.
c. shop contributes nothing to production because only existing goods are involved.
d. shop contributes value added equal to $2,500, but only $1,500 is added to GDP.
B
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Oligopolistic firms tend to make large economic profits over time because
A. they have complete control in the market to charge any price they want. B. they produce at a point that is allocatively efficient. C. they charge higher than average total cost prices. D. they are productively efficient and produce the least costly way.
Which of the following can start an inflation?
A) an increase in aggregate demand B) an increase in aggregate supply C) a decrease in aggregate supply D) Both answers A and C are correct. E) Answers A, B, and C are correct.
Bubba is a shrimp fisherman who could earn $5,000 as a fishing tour guide. Instead, he is a full-time shrimp fisherman. In calculating the economic profit of his shrimp business, the $5,000 that Bubba gave up is counted as part of the shrimp business's
a. total revenue. b. explicit costs. c. implicit costs. d. marginal costs.
The assets of a bank include deposits, while the liabilities of a bank include loans
Indicate whether the statement is true or false