Suppose we have the following information about a shoe manufacturer: wages $100,000, sales $500,000, taxes $50,000, loan interest $10,000, leather purchases $170,000, rubber purchases $130,000
What is the contribution of this manufacturer to GDP using the income approach? A) $500,000.
B) $300,000.
C) $200,000.
D) $40,000.
C
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If people believe that prices are going to be higher in the future then they are today, they will
a. wait until the future to purchase the things they wand b. decrease their demand now c. increase their demand now d. increase their supply now e. save more today so they have the income to buy more in the future
Which of the following additions to an insurance contract will not act to reduce moral hazard?
A. Co-payments for covered costs. B. Deductibles for covered costs, that is, the first X dollars of claims are paid by the insured. C. Cost caps, that is, limitations on total payments that can be made from a claim. D. Age limitations on who can be insured.
Companies use the foreign-exchange market to convert money for use in financial transactions.
a. true b. false
Producer surplus equals total revenue minus the sum of all marginal cost
Indicate whether the statement is true or false