Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$.50Friendly Groceries$4.00$2.50What is the sum of the value added of all of the firms?
A. $3.00
B. $7.00
C. $6.50
D. $4.00
Answer: D
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Which of the following shifts the demand curve for movies leftward?
A) a decrease in the price of NetFlix, a substitute for movies B) a decrease in the price of movie tickets C) an increase in movie star salaries D) an increase in incomes, assuming movies are a normal good E) an increase in the price of movie tickets
Your student association is looking for an auditorium to rent for an all-day conference. The university's Performing Arts Center is vacant on that day, so the association wants to rent it
The physical plant manager tells you that the daily rent is $660, which includes $400 to cover part of the cost paid to build the Center, $40 to cover part of its regular maintenance cost, $50 to help pay for the building's insurance, $100 to cover the extra cost of electricity that the university would incur because of the conference, and $70 to pay for additional janitorial services for the conference. You know that no one else wants to rent the Center on that day and you think that the price that the manager charges is too high. But how much should you pay? Use the economic way of thinking to answer this question and to convince the manager to accept your offer: a) If you rent the Center, what will be the university's marginal cost of renting the center to you? b) If you rent the Center, what will be the university's marginal benefit of renting the center to you? c) What amount of rent should you offer? Convince the manager to accept your offer.
In the late 1980s the U.S. government ran a succession of large budget ________ which resulted mainly in ________ crowding-out
A) deficits, domestic B) deficits, international C) surpluses, domestic D) surpluses, international
Which of the following is most likely to be used efficiently?
A. A publicly-owned natural resource B. A private good that entails an external cost C. A private good that entails an external benefit D. A privately-owned natural resource