Assume That a Product Has the Following Three Stages of Production

question 81

Multiple Choice

Assume that a product has the following three stages of production: If the value-added tax (VAT) rate is 20%,what would be the VAT over all stages of production?

• A)€ 90
• B)€120
• C)€300
• D)€225

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Definitions:

Heuristics

Mental shortcuts, or rules of thumb, that are used for making judgments and decisions.

Sleeper Effect

A delayed increase in the effect of a message that follows a period of discounting or ignoring the message.

Primacy Effect

The phenomenon that the first items presented in a series are more likely to be remembered than items in the middle.

Moderate Alcohol Consumption

The intake of alcoholic beverages within limits considered to have minimal health risk, often defined differently across cultures and guidelines.