In a given year, suppose a company spends 100 million on ...

[vicotolentino]

In a given year, suppose a company spends 100 million on intermediate goods and 200 million on wages, with no other expenses. Also assume that its total sales are 800 million. The value added by this company equals
 
  A) 200 million.
  B) 300 million.
  C) 500 million.
  D) 700 million.
  E) 800 million.

Question 2

Hedonic pricing is
 
  A) the way that luxury goods are priced in a market economy.
  B) the tendency for the inflation rate to rise by greater and greater amounts.
  C) the tendency for nominal GDP to rise when the price level rises.
  D) the process of translating nominal GDP into real GDP.
  E) the process of pricing individual characteristics of a good or service.

[morganmarie791]

Answer to Question 1

D

Answer to Question 2

E

[vicotolentino]

Correct answers!

[morganmarie791]

Great! Please up vote