Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00 What is the value added of Florida Jam Company?
A. $2.00
B. $0.75
C. $1.25
D. $0.50
Answer: C
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In the endogenous growth model, an increase in a worker's level of human capital
A) increases the amount of additional human capital she can produce, but does not increase the amount of output she can produce. B) increases the amount of additional output she can produce, but does not increase the amount of human capital she can produce. C) increases both the amount of additional human capital she can produce and the amount of output she can produce. D) increases neither the amount of additional human capital she can produce nor the amount of output she can produce.
During the Civil War, the North issued currency, known as "greenbacks". Which of the following is true of "greenbacks"?
A. Greenbacks were tied to the value of gold and silver. B. Greenbacks are still legal tender in the U.S. C. Greenbacks are a historical example of commodity money. D. The South used "greenbacks" to pay for salaries and supplies.
We derive the ________ for X from indifference curves and a budget constraint by changing the price of X.
A. supply curve B. total utility C. demand curve D. marginal utility
The government reduces the corporate profits tax. As a result, corporate profits increase. This will
A. increase the nonlabor income of households, causing consumption to increase and labor supply to increase. B. increase the nonlabor income of households, causing consumption to increase and labor supply to decrease. C. increase the nonlabor income of households, causing consumption to increase and labor supply to increase or decrease depending on the relative magnitude of the income and substitution effects. D. have no effect on households.