In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals

In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In a given year, suppose a company spends $100
million on intermediate goods and $200 million on
wages, with no other expenses. Also assume that
its total sales are $800 million. The value added by
this company equals
а.
$700 million.
b.
$200 million.
С.
$800 million.
d.
$300 million.
е.
$500 million.

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