Question

1. A farmer pays $0.20 for seed that he uses to grow wheat which he sells to the miller for $0.40; the miller makes wheat flour and sells it to the baker for $0.60. The baker makes bread and sells it to the grocery store for $0.80 and the store sells it to the consumer for $1.00. The total contribution to the Gross Domestic Product (GDP) from all these transactions is

   	A.	$3.00
   	B.	$2.00
   	C.	$1.00
   	D.	$0.20

1 points   

QUESTION 15

1. There has been some concern in the United States that people are NOT saving enough. This is a concern because

   	A.	decreases in saving lead to increases in innovation.
   	B.	decreases in saving lead to decreases in investment.
   	C.	decreases in saving lead to decreases in labor productivity.
   	D.	decreases in saving lead to increases in consumption in the future.

1 points   

QUESTION 16

1. When both supply and demand for a product increase simultaneously, we

   	A.	can predict that both equilibrium price and equilibrium quantity will decrease.
   	B.	need more information to predict change in equilibrium quantity and equilibrium price.
   	C.	can predict that both equilibrium price and equilibrium quantity will increase.
   	D.	need more information to predict change in equilibrium price, but equilibrium quantity will increase.

1 points   

QUESTION 17

1. You are the president of Old Salt, a manufacturer of snack chips. You decide it is time to adopt corporate social responsibility in your business approach. Which of the following actions would you take?

   	A.	You push for the deregulation of your industry.
   	B.	You price your pita chip line so that it sells below cost.
   	C.	You change your company's packaging to a more eco-friendly material.
   	D.	Your sponsor a game that people can win by buying your product.

Answer 1

14. Option -D

Gross domestic Product takes into consideration only the value of final goods produced in the domestic territory. final form of wheat is bread . So the value considered here his $1.00

15. Option B

In an economy , savings of individuals are injected back into the economy by way of investments. Investments are directly related with the money saved.

16. Option D

An increase in demand causes increase in price. As price rises supply also rises. Hence equilibrium quantity increases. But to determine change in equilibrium price , the rate of change in demand and supply id needed.

17. Option C

Corporate social responsibility approach is a business strategy in which corporates sector looks into social and environmental concerns and adopt environment friendly innovations.