Suppose That the Total Salary of All the Employees at a Factory

question 79

Multiple Choice

Suppose that the total salary of all the employees at a factory in a certain city is $300,000. Of this salary, 60% is spent in the city. Of the money spent in the city, 60% is again spent in the city. If this continues indefinitely, how much total money is spent in the city, that is, how much of an effect does the original total salary have on the local economy?

• A) $1,800,000
• B) $288,000
• C) $450,000
• D) $352,800

---

Definitions:

Restitution

The act of restoring or compensating for loss or damage incurred, often involving the return of property or payment of money to the rightful owner.

Injunction

A legal order from a court requiring a person to do or refrain from doing a specific action.

Pharmacy

A place where drugs and medicines are prepared and dispensed by a licensed pharmacist.

Anticipatory Repudiation

A situation in contract law where one party prematurely conveys their decision not to fulfill the contract terms, breaching the agreement.