Which of the following is an example of an intermediate good?
A. the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to
B. lumber you buy to build a house for your dog
C. the chocolate you buy to make yourself some cookies
D. the dough you buy to fix yourself a pizza for dinner
Answer: A
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What are scarce resources? Why are economic agents concerned with the allocation of these resources?
What will be an ideal response?
In practice, one of the principal problems with aggregate demand management is that
A) changes in aggregate demand do not affect output. B) changes in aggregate demand cannot reduce unemployment. C) changes in aggregate demand are highly inflationary. D) stabilization policies could increase aggregate demand too much and at the wrong times.
If the interest rate is 5 percent, then receiving $1,000 eight years from now is worth more than receiving $700 today
a. True b. False Indicate whether the statement is true or false
The steeper the planned investment schedule (curve)
A) the larger is the crowding-out effect. B) the smaller is the crowding-out effect. C) the larger is the change in planned investment as a result of changes in the interest rate. D) the smaller is the change in money demand as a result of changes in the interest rate.