We know the following about a tie manufacturer: tie sales 1,300, ...

[asan beg]

We know the following about a tie manufacturer: tie sales 1,300, cotton purchases 750, wages 400, interest on business loans 100, and profits 50. What is the contribution to GDP of this producer using the income approach?
 
  A) 550
  B) 500
  C) 450
  D) 400

Question 2

The substitution effect that occurs when interest rates change involves a change in consumption that develops from ________.
 
  A) a change in the general level of prices
  B) a period of increasing productivity
  C) a change in the level of income
  D) a change in the relative prices of consumption in the two periods

[ktidd]

Answer to Question 1

A

Answer to Question 2

D

[asan beg]

Thanks for the timely response, appreciate it

[dreamfighter72]

YES! Correct, THANKS for helping me on my review