If a farmer grows a head of cabbage with fertilizer costs of $0.10 and seed costs of $0.15 and sells it to a wholesaler for $0.55, the total value added by the farmer is
A. $0.30.
B. $0.25.
C. $0.35.
D. $0.55.
Answer: A
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In 2011, apples cost $1.49 a pound. Suppose the CPI was 120 in 2011 and 140 in 2012. If there is no change in the real price of an apple in 2012, what is the price of a pound of apples in 2012?
A) $2.74 B) $1.69 C) $1.66 D) $1.74 E) $1.28
Monetary policy actions are determined by the
A) Federal Open Market Committee. B) New York Federal Reserve Bank. C) President of the United States. D) U.S. Congress.
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $8 to $11:
A. total producer surplus would increase to $17. B. total producer surplus would increase to $5. C. total producer surplus would decrease to $1. D. total producer surplus would decrease to $7.
Referring to Figure 18.2, U.S. goods will become cheaper in Mexico if the exchange rate goes from ________ to ________ pesos to the dollar.
A. 12; 11 B. 12; 13 C. 11; 13 D. 10; 14