If a firm hires labor for $6,000, pays rent of $2,000, buys raw materials for $10,000 from another firm, earns profits of $800, and sells its output for $25,000, the value added by the firm is _____
a. $6,200
b. $9,000
c. $15,000
d. $18,000
e. $18,800
c
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An increase in the real rate of interest that can be earned on U.S. investments above the rate that can be earned on investments in India would:
a. increase the price of the dollar in Indian rupees. b. increase the supply of dollars by those holding U.S. dollars. c. decrease the equilibrium exchange rate of Indian rupees per dollar. d. all of these.
A family on a trip budgets $800 for restaurant meals and fast food. The family can buy 16 restaurant meals if they don't buy any fast food. What is the price of a fast-food meal for the family?
a. $5 b. $16 c. $20 d. $50 e. it is impossible to tell from the information given
The phase in the business cycle in which real GDP begins to decline is called a
a. trend b. peak c. downturn d. recovery e. trough
A balance-of-payments surplus for the United States can be corrected by
A. Increasing quotas on foreign goods. B. Increasing U.S. taxes. C. Subsidizing U.S. exports. D. Reducing tariffs on foreign goods.