Suppose a Firm Buys $1000 Worth of Inputs from Other

question 88

Multiple Choice

Suppose a firm buys $1000 worth of inputs from other firms,hires $1000 worth of labour services,and has sales revenue of $2500.The firm's resulting profit is $500.According to a value- added tax such as the GST,this firm would pay taxes on

• A)$500.
• B)$2500.
• C)$1000.
• D)$1500.
• E)$4500.

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Definitions:

Clearance Calculation

A method used to determine the rate at which a substance is removed from the body by the kidneys, indicating kidney function and efficiency.

Hematocrit

The proportion of blood volume that is occupied by red blood cells, expressed as a percentage.

Extracellular Fluid

The body fluid outside the cells, which includes blood plasma, lymph, and interstitial fluid, providing a medium for nutrient and waste transport.

Excretion

The process of removing metabolic waste products and other non-useful materials from an organism to maintain internal homeostasis.