A firm purchases $600,000 worth of raw materials and pays wages and salaries of $100,000 and dividends of $200,000 . If the firm sells its output for $1 million, the firm's value added to GDP is
a. $300,000.
b. $400,000.
c. $900,000.
d. $1,000,000.
B
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In a monopolistically competitive market with Dixit-Stiglitz preferences, equilibrium price falls as the goods in the differentiated product market become more substitutable.
Answer the following statement true (T) or false (F)
Since crowd funding sites do not themselves invest in business start ups that raise funds on their sites, they don't reduce:
A) the principal-agent problem B) information costs C) transaction costs D) asymmetric information
The demand curve facing a firm will be more elastic,
a. the fewer the number of competing firms b. the more differentiated the product c. the more substitutes there are for its product d. the greater the firm's ability to control price e. the larger the profit the firm can make
Which of the following are likely to be studied in a microeconomics course?
a. choices made by individual consumers b. the causes of inflation c. how the economy's total output is measured d. how an increase in government spending affects the level of unemployment