Assume That a Product Has the Following Three Stages of Production

question 78

Multiple Choice

Assume that a product has the following three stages of production: $\begin{array}{ccc}\text { Production Stage } & \text { Selling Price } \\1 & € 600 \\2 & € 1,40 \mathrm{C} \\3 & € 1,70 \mathrm{C}\end{array}$ If the value-added tax (VAT) rate is 15 percent,what would be the VAT over all stages of production?

• A)€90
• B)€120
• C)€465
• D)€255

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness of the world's economies.

Free Traders

Individuals or entities advocating for minimal restrictions on international trade, believing it enhances economic efficiency and benefits all countries involved.

Merchandise Trade Imbalance

A situation where the import and export of goods in a country do not balance, resulting in either a trade surplus or deficit.

Overall Trade Imbalance

A situation where the value of a country's imports significantly surpasses or falls short of its exports, reflecting a disparity in trade flow.