If a firm hires labor for 4,000, pays rent of 1,500, buys raw ...

[pragya sharda]

If a firm hires labor for 4,000, pays rent of 1,500, buys raw materials for 6,000 from another firm, earns profits of 500, and sells its output for 14,000, the value added by the firm is _____.
 a. 12,000
  b. 8,000
 c. 6,000
 d. 2,000
 e. 500

Question 2

The demand curve for labor of Coca-Cola manufacturers will not shift to the right if:
 a. d and e.
  b. the price of Coca-Cola increases.
  c. the firms innovate with new technology that raises labor productivity.
  d. the price of Pepsi decreases.
  e. Coca-Cola workers become unionized.

[mcabuhat]

Answer to Question 1

b

Answer to Question 2

a