If a firm hires labor for 6,000, pays rent of 2,000, buys raw ...

[rachel9]

If a firm hires labor for 6,000, pays rent of 2,000, buys raw materials for 10,000 from another firm, earns profits of 800, and sells its output for 25,000, the value added by the firm is _____.
 a. 6,200
 b. 9,000
 c. 15,000
  d. 18,000
  e. 18,800

Question 2

A technological advance that increases labor productivity will:
 a. lower wages.
  b. decrease the demand for labor as fewer workers are needed.
  c. decrease the supply of labor as fewer workers are needed.
  d. increase the demand for labor as MP rises.
  e. decrease the demand for labor as MP falls.

[tmlewis4706]

Answer to Question 1

c

Answer to Question 2

d