GTD Tea is produced by a four-step process. For the tea grower, the value of the tea is $1.00. For the tea processor, the value of the tea is $1.50. For the tea shipper and wholesaler, the value of the tea is $2.25. And finally, for GTD, the value of the tea is $3.25. Using the value added method, what is the total value added for this tea?
a. $2.75
b. $3.00
c. $3.25
d. $3.50
c. $3.25
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Consider the market for high-end wine. Statistics show that wealthier families spend a greater proportion of their income on high-end wine than do poorer families. If households' incomes rise substantially during an economic recovery, then we can expect
a. an increased demand for high-end wine. b. an increased supply of high-end wine. c. a lower price for high-end wine. d. the demand curve for high-end wine to shift to the left.
If a firm adds one more worker and total output increases from 100 to 120, the marginal product of labor equals
a. 220. b. 120. c. 100. d. 20.
If the price of gasoline rises, when is the price elasticity of demand likely to be the highest?
a. immediately after the price increases b. one month after the price increase c. three months after the price increase d. one year after the price increase
A case study of NAFTA, with regard to the benefits for Canada from U.S. trade, found that:
a. Canada was not able to increase its exports due to barriers still remaining. b. Canada had modest gains but was harmed by immigration into the United States from Mexico. c. Canada had more trade diversion than trade creation and so was harmed overall. d. Canada had more trade creation than trade diversion and so benefited overall.