In producing a sweater, a man who shears sheep pays a farmer $4 for a sheep. The shearing shop sells the wool to a knitting mill for $7 . The knitting mill buys the wool and makes it into a fine fabric and sells it to a sweater-making firm for $13 . The sweater- making firm sells the sweater to a clothing store for $20, and the clothing store sells the sweater, gift wrapped, for $50 . What is the
contribution to GDP of the previous sales transactions?
a. $4
b. $20
c. $24
d. $50
e. $94
D
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Gordon notes that the average growth rate of labor productivity between 1996 and 2004 was ________ percent, and the average reached ________ percent in 2003-04
A) 3; 3.5 B) 2; 205 C) 1.7; 3.2 D) 2; 1.5
Which of the following would increase the demand for union labor?
A) increasing worker productivity B) increasing the demand for union made goods C) decreasing the demand for non-union-manufactured goods D) all of the above
Suppose the supply of ocean front property in San Diego is perfectly inelastic. Any increases in demand for this property increases the
A. present discounted value. B. economic rent. C. opportunity cost of land owners. D. real interest rate.
When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity of demand coefficient for this product is:
A. 1.5 B. 0.15 C. 0.67 D. 67