The market price for a final good reflects
A) the objective value of the good.
B) the values added by earlier stages of production.
C) the seller's profit.
D) the buyer's loss.
E) both C and D.
B
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Which of the following could be written into an insurance contract in order to reduce the problem of moral hazard?
a. co-payments for repair services b. deductibles for repair services c. limitations on insurance coverage d. All of the above are correct.
If the price elasticity of demand is very elastic, which of the following could be a possible value of the elasticity?
A. 2 B. 1 C. 1/3 D. 0
The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is
A) positively sloped. B) negatively sloped. C) vertical. D) horizontal.
In the above figure, which path represents a cost-push inflation?
A. Point A to B to D to E to G
B. Point A to C to D to F to G
C. Point A to C to D to E to G
D. Point A to B to D to F to G