Which of the following is NOT an example of a factor of production?

When the economy is hit by a negative demand shock and the central bank does not respond by changing the autonomous component of monetary policy, then

A) inflation will be lower. B) output will be at its potential. C) output will be lower. D) inflation will not change. E) both A and B.

The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1000 in taxes, and has profits of $3000. What is its value added?

A) $3000 B) $19,000 C) $39,000 D) $59,000