A farmer sells sugar to a candy producer for $150 . If the producer uses this sugar to make candy that sells for $200, what is the total contribution to GDP from these transactions?
$200
You might also like to view...
When two variables move in opposite directions, they are said to be:
A) uncorrelated. B) positively correlated. C) negatively correlated. D) directionally correlated.
Refer to Figure 23-4. Potential GDP equals $500 billion. The economy is currently producing GDP1 which is equal to $450 billion. If the MPC is 0.8, then how much must autonomous spending change for the economy to move to potential GDP?
A) -$40 billion B) -$10 billion C) $10 billion D) $40 billion
"Equilibrium" is defined in economics in a special way, but it is fair say that if a nation is in short-term equilibrium, then:
a. It is close to full employment. b. It is close to price stability. c. It is operating at relatively high level of performance. d. All of the above. e. None of the above.
Which statement is true?
A. Most people would put in a maximum workweek of 48 hours no matter what the pay. B. As one's income rises, eventually the income effect outweighs the substitution effect. C. As one's income rises, eventually the substitution effect outweighs the income effect. D. The "backward bending" supply curve is not really backward bending.