Author Question: We know the following about a tie manufacturer: tie sales 1,300, cotton purchases 750, wages 400, ... (Read 56 times)

asan beg · **on:** Jun 30, 2018

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