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:

Probing Questions

In-depth questions designed to elicit detailed information, clarify responses, or explore topics more comprehensively during research or interviews.

In-depth Information

Detailed, thorough, and comprehensive data or knowledge about a subject.

Reliability

The consistency of a research study or measuring test to provide the same results under the same conditions.

Test-Retest

A method of measuring the consistency of a test by administering the same test to the same subjects at two different points in time.