Use the Following to Answer Questions

question 50

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 amount paid by Crane Construction to Fuller Mill?

• A) $825,000
• B) $725,000
• C) $247,500
• D) $225,000

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Definitions:

Secondary Group

A group that is relatively large in number and not as intimate or long in duration as a primary group.

Primary Groups

Small, close-knit, and usually long-term social groups in which members share deep, personal, and enduring relationships.

Secondary Groups

Larger, more impersonal groups in society that individuals join for specific purposes, often characterized by limited emotional ties and duration, such as professional organizations or corporations.

Intimate

Relating to a very close personal relationship characterized by deep emotional or physical bonding, often used to describe friendships, romantic relationships, or family ties.