Exhibit 13-4: Market for Healthy Hands Lotion

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In Exhibit 13-4, the makers of Healthy Hands Lotion discovered that the lotion can cause skin reactions, but it doesn't inform the buyers. While the market experiences imperfect information, the price and quantity will be 

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.

The budget of an economy is said to be in deficit when: a. federal outlays exceed revenues

b. federal revenues exceed outlays. c. anticipated inflation rate exceeds its actual rate. d. there is a loss of value of a country's currency with respect to one or more foreign reference currencies. e. anticipated interest rate exceeds its actual rate.