Use the Following to Answer Questions

question 116

Multiple Choice

Use the following to answer questions .
Exhibit: Stages in the Production of an Office Building

-(Exhibit: Stages in the Production of an Office Building) A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses. What is the valued-added by Crane Construction?

• A) $725,000
• B) $825,000
• C) $950,000
• D) $1,050,000

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Definitions:

Green Accounting

A type of accounting that attempts to factor environmental costs into the financial results of operations.

Gross Domestic Product

An indicator of a nation's economic output, reflecting the aggregate worth of all produced goods and services within a defined timeframe.

Natural Resource Depletion

Refers to the exhaustion of raw materials within an environment due to overuse, misuse, or unsustainable use, often leading to long-term environmental and economic consequences.

National Income Accounting

A system that records a country's economic transactions and measures its economic performance.