Suppose There Are Only Two Firms in an Economy: Cowhide,Inc

question 113

Multiple Choice

Suppose there are only two firms in an economy: Cowhide,Inc.produces leather and sells it to Couches,Inc. ,which produces and sells leather furniture.With each $1,000 worth of leather that it buys from Cowhide,Inc. ,Couches,Inc.produces a couch and sells it for $2,600.Neither firm had any inventory at the beginning of 2015.During that year,Cowhide produced enough leather for 25 couches.Couches,Inc.bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016.Couches,Inc.produced 20 couches during 2015 and sold each one during that year for $2,600.What was the economy's GDP for 2015?

• A)$25,000
• B)$52,000
• C)$57,000
• D)$65,000

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Definitions:

Therapeutic Setting

An environment designed to facilitate healing and therapy, often characterized by safety, privacy, and comfort.

Exposure Therapies

Behavioral techniques, such as systematic desensitization, that treat anxieties by exposing people (in imagination or actuality) to the things they fear and avoid.

Mary Cover Jones

Known as the "mother of behavior therapy," she conducted pioneering work on desensitization and counterconditioning techniques.

Systematic Desensitization

A behavior therapy used to reduce phobic anxiety through the gradual exposure to the feared stimulus paired with relaxation exercises.