A Business Sells Its Output for $2,000

question 73

Multiple Choice

A business sells its output for $2,000. It pays $1,100 in wages, $500 for material bought from other businesses, and has profits of $400. Its value added is

• A) is $400.
• B) is $1,100.
• C) is $1,500.
• D) is $1,600.
• E) depends on whether it produces intermediate products.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specific time period.

Tariff

is a tax imposed by a government on goods and services imported from other countries to protect domestic industries from foreign competition.

Domestic Price

The price of goods or services within a country, influenced by local demand and supply conditions, taxes, and other internal factors.

Carnations

A type of flower known for its distinct, clove-like scent and its popularity as a gift or decorative plant.