Table 12-5 Consider the Table Above Showing Three Stages of Production of \text

question 261

Multiple Choice

Table 12-5
$\begin{array}{|c|c|c|c|}\hline \text { Stage of Production } & \text { Seller } & \text { Buyer } & \text { Price } \\\hline 1 & \text { Steelmill } & \text { Auto manufacturer } & \$ 10,000 \\\hline 2 & \text { Auto manufacturer } & \text { Auto dealer } & 18,000 \\\hline 3 & \text { Auto dealer } & \text { Consumer } & 25,000 \\\hline\end{array}$ Consider the table above showing three stages of production of an automobile.
-Refer to Table 12-5.The value of each automobile in gross domestic product equals

• A) $7,000.
• B) $15,000.
• C) $18,000.
• D) $25,000.

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Definitions:

Slope

In mathematics and economics, the measure of the steepness or incline of a line, indicating the rate of change of one variable with respect to another.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, illustrating preferences and trade-offs.

Budget Constraint

The constraint on the collection of goods or services a consumer is able to purchase, determined by their income and the cost of those goods or services.

Utility

A measure of satisfaction or happiness that consumers derive from consuming goods and services.