If a used car dealer purchases a used car for $3,000, makes repairs and refurbishes it, then sells it for $8,000, the
a. dealer contributes value added equal to $5,000, but nothing is added to GDP.
b. dealer contributes value added equal to $5,000, and consequently $5,000 is added to GDP.
c. dealer contributes nothing to production because only existing goods are involved.
d. dealer contributes value added equal to $8,000, but only $5,000 is added to GDP.
B
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When financial markets are __________, leverage ______________; when they are _______, leverage ____________.
A. booming; multiplies the gains; crashing; magnifies the losses B. booming; magnifies the losses; crashing; multiplies the gains C. crashing; mitigates the losses; booming; mitigates the gains D. crashing; magnifies the losses; booming; mitigates the gains
Comparative advantage indicates which specific terms of trade will arise, given two countries' production possibilities
a. True b. False Indicate whether the statement is true or false
A sterilized intervention is actually a combination of two transactions. What are they and what is the effect on the monetary base?
What will be an ideal response?
The United States did not join the ICC because the U.S. government
a. disagreed with the enforcement mechanisms it put in place. b. feared the ICC would be used as a political tool against it. c. believed the ICC to be an extremely ineffective organization. d. had never been formally asked to join.