Value added by a firm is the market value of the firm's output minus the:
A. Total wages paid to its employees
B. Value of inputs bought from other firms
C. Profits that the firm's owners earn
D. Total costs of all inputs used
B. Value of inputs bought from other firms
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Dividing the value of real GDP by aggregate labor hours gives
A) the net domestic product. B) labor productivity. C) the size of the labor force. D) the rate of capital accumulation.
Both the CAPM and APT suggest that an asset should be priced so that it has a higher expected return
A) when it has a greater systematic risk. B) when it has a greater risk in isolation. C) when it has a lower systematic risk. D) when it has a lower systematic risk and a lower risk in isolation.
A stove is produced by a firm in 2014, added to the firm's inventory in 2014, and sold to a household in 2015 . It follows that
a. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and subtracted from the investment category of 2015 GDP. b. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP. c. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP. d. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and added to the investment category of 2015 GDP.
Say a study reveals that price elasticity of demand for teenage smoking was -0.5. If the government imposed a tax on cigarettes the total expenditure teenagers spend on buying cigarettes would
A. decrease. B. stay the same. C. increase. D. we can't answer with the information given.