Use the Following to Answer Questions

question 59

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. Suppose the value-added tax is 10%. What is the total VAT collected from all stages of production including final sale?

• A) $1,050,000
• B) $127,500
• C) $95,000
• D) $72,500

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Definitions:

Subjective Rating

An evaluation or judgment that is based on personal opinions, feelings, or tastes, rather than on external evidence or objective criteria.

Dichotomous

Divided or dividing into two sharply distinguished parts or classifications.

Mental Measurements Yearbook

A collection of consumer-oriented test reviews designed to promote informed test selection that is published every few years by the Buros Center for Testing at the University of Nebraska.

Personality Inventory

A questionnaire or other standardized instrument designed to assess various aspects of a person's character, temperament, and interests.