If the Production of a Sofa Requires the Purchase of 3

question 184

Multiple Choice

If the production of a sofa requires the purchase of 3 types of inputs and the production of a harp requires the purchase of 30 types of inputs,

• A)the harp-producing firm will buy the sofa-producing firm
• B)the sofa-producing firm will buy the harp-producing firm
• C)harp production is more likely to be done by firms than sofa production is
• D)sofa production is more likely to be done by firms than harp production is
• E)both harp and sofa production will always be done by firms because there is more than one input involved in each

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Definitions:

Savings

The portion of disposable income not spent on consumption of consumer goods but accumulated or invested.

Disposable Income

The financial surplus households hold for spending and saving after income taxes have been applied.

Savings

Money that is put aside for future use rather than spent immediately.

Suburban Lifestyle

A way of living that typically involves residing in outlying residential areas of cities, often characterized by single-family homes and emphasis on community and family life.