A business buys $5000 worth of resources to produce a product. The business makes 100 units of the product and each of them sells for $65. The value added by the business to these products is:
What will be an ideal response?
$1500
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Generally speaking, the greater the MPS, the
A. larger would be the increase in income that results from an increase in consumption spending. B. smaller would be the increase in income that results from an increase in consumption spending. C. smaller would be the increase in income that results from a decrease in consumption spending. D. larger would be the increase in income that results from a decrease in consumption spending.
In the long run, an increase in the quantity of money leads to
A) a smaller percentage increase in the real interest rate. B) a smaller percentage increase in the price level. C) an equal percentage increase in the price level. D) no effect on the price level or on real GDP. E) an equal percentage increase in the real interest rate.
In the figure above, the market for jackets ________ in long-run equilibrium, and there is ________ for new firms to enter
A) is; no incentive B) is; an incentive C) is not; an incentive D) is not; no incentive
How is a potentially efficient change different from a Pareto optimal change?
What will be an ideal response?