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:

Impression Formation Theory

Theory that explains how you develop perceptions about people and how you maintain and use those perceptions to interpret their behaviors.

Correspondence Inference Theory

A psychological theory that explains how and why people draw inferences about the dispositional attributes of others based on observed behavior and its consequences.

Self-Serving Bias

Tendency to perceive our own behavior as more positive than others’ behavior.

Fundamental Attribution Error

Error that arises from attributing another person’s behavior to internal, controllable causes rather than to external, uncontrollable causes.