The value added by a firm is defined as:
a. the sum of all income earned by the workers in the firm
b. the firm's actual investment minus planned investment.
c. the value of the product manufactured by the firm plus the transaction costs incurred by the firm.
d. the value of the firm's product minus the cost of materials it bought from other firms.
e. the increase in the value of the firm's stock or bond.
d
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Refer to Table 7-2. Select the statement that accurately interprets the data in the table
A) Madison has an absolute advantage in making empanadas and tacos. B) Austin has an absolute advantage in making empanadas and tacos. C) Madison has an absolute advantage in making empanadas and Austin has an absolute advantage in making tacos. D) Madison has an absolute advantage in making tacos and Austin has an absolute advantage in making empanadas.
Researcher Terry Anderson claims that with respect to the supply of water, trading it would be
a. wrong and counter-productive. b. essentially impossible due to lack of technologies to move the water. c. highly productive and bring cooperation among the traders. d. a problem, since monopolists would come to own too much.
In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society?
a. Two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells. b. Two airlines dominate air travel between City A and City B, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities. c. Two superpowers decide whether to build new weapons or to disarm. d. In all of the above cases, the cooperative outcome of the game is good for the two players and bad for society
Representative money refers to bank notes that exchange for a specific commodity, such as gold
Indicate whether the statement is true or false