A Firm Produces a Good and Generates $5 Million in Receipts

question 225

Multiple Choice

A firm produces a good and generates $5 million in receipts. Wages are $3 million, rent is $500,000, and interest payments are $1 million. Then

• A) profits are $500,000, the cost of production is $4.5 million, and households receive income equal to $4.5 million.
• B) profits are $500,000, the cost of production is $5 million, and households receive income equal to $4.5 million.
• C) profits are $500,000, the cost of production is $5 million, and households receive income equal to $5 million.
• D) profits are $500,000, the cost of production is $5 million, and households receive income equal to $3.5 million.

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Definitions:

Exporting

The act of sending goods or services produced in one country to another country for the purpose of selling them there.

Sexual Harassment

Unwanted or inappropriate sexual advances or remarks, often in the workplace, that create a hostile or intimidating environment.

Employment Situation

The current status of the job market, including levels of employment, unemployment, and the types of jobs available.

Canadian Human Rights Act

Legislation in Canada that prohibits discrimination on the basis of race, national or ethnic origin, color, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics, disability, and conviction for an offense for which a pardon has been granted.