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.
E) $43.
C
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All of the following can create a bias in the CPI EXCEPT the
A) new goods bias. B) outlet substitution bias. C) commodity substitution bias. D) GDP price index bias. E) quality change bias.
For a given quantity, the total profit of a perfectly competitive firm is equal to the vertical distance between the firm's total revenue curve and its total cost curve
Indicate whether the statement is true or false
The above figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from a decrease in the price of soda. What change in quantity best represents his income effect?
A) 3 B) 10 C) 15 D) 7
If a country's working-age population declines and its wealth increases, then the labor supply curve
A. shifts to the right. B. shifts to the left. C. shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population. D. shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population.