5. A construction company produces a $200,000 house using $50,000 worth of wood and steel in addition to $50,000 of labor hours. The value added by the construction company is a) $150,000. b) $100,000. c) $200,000. d) $50,000. 6. Consider a simple economy producing 2 goods: coffee and TVs. In 2014 the economy produced 2000 pounds of coffee and 10 TVs. In 2015 the economy produced 1000 pounds of coffee and 12 TVs. The price of one TV was $1,000 in both years while the price of coffee decreased from $6/pound in 2014 to $5/pound in 2015. Based on this information the inflation rate is approximately: a) -28.3% b) -2.7% c) -50% d) -6.2% 7. Which of the following counts as investment? a) You buy a stock. b) You buy a computer to use for fun at home. c) You buy a new house. d) All of these choices are correct