Suppose a manufacturer of software develops a new computer program that sells for $50. The $50 cost includes $0.25 for the CD it is stored on, $5 for the labor of the company software programmers, and $1.75 for packaging materials and transportation costs. Value added by the software company is
A) $49.75.
B) $48.25.
C) $48.
D) $44.75.
C
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If the market for a product is narrowly defined, then there are likely to be many substitutes for the product and the demand for the product is relatively elastic
Indicate whether the statement is true or false
The current debate about fiscal and monetary policy tends to focus on
a. which policy is less destabilizing. b. which policy is more effective. c. whether the Fed can control the money supply. d. which policy works more quickly.
As commercial banks keep more excess reserves, money creation
A. decreases. B. increases. C. remains the same. D. could either increase or decrease.
The price paid by a tenant to rent an apartment most closely reflects the cost to the
A) landlord of constructing (or purchasing), maintaining, and operating the apartment. B) landlord of not renting to someone else. C) society of the opportunities thereby forgone. D) tenant of finding an alternative place to live.