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$0.50Friendly Groceries$4.00$2.50 What is the value added of Fulton Family Farm?
A. $0.00
B. $0.50
C. $2.50
D. $1.50
Answer: B
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Use the following graph for a competitive market for a product where the government has set a price ceiling of 0A to answer the question below.
What quantity will buyers be able to buy after the imposition of the price ceiling?
A. 0L B. KL C. JL D. 0J
Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will be shared by all three
Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?
If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's producers end up
A) receiving a higher price for the good than they otherwise would. B) receiving a lower price for the good than they otherwise would. C) producing less of the good than they otherwise would. D) receiving a lower profit for the domestic good than they otherwise would.
When the money supply increases by $5 billion, tax revenues are $10 billion, and government borrowing is $30 billion, government spending must equal:
a. $10 billion. b. $15 billion. c. $20 billion. d. $35 billion. e. $45 billion.