Suppose We Have the Following Information About a Shoe Manufacturer

question 53

Multiple Choice

Suppose we have the following information about a shoe manufacturer: wages $100,000,sales $500,000,taxes $50,000,loan interest $10,000,leather purchases $170,000,rubber purchases $130,000. What is the contribution of this manufacturer to GDP using the income approach?

• A) $500,000.
• B) $300,000.
• C) $200,000.
• D) $40,000.

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Definitions:

Strict Liability

A legal principle that holds parties responsible for damages or harm caused by their actions, without the need for proving negligence or fault.

Obstacles to Recovery

Factors or circumstances that hinder or prevent an individual or entity from recovering from a loss or injury.

Section 402A

A section of the Restatement (Second) of Torts that established the principle of strict liability for defective products, making manufacturers and sellers liable for damages caused by defective products.

Implied Warranty of Fitness

A legal assumption in many jurisdictions that a product sold will be suitable for the particular purpose for which the buyer intends to use it.