Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 21, Problem 2.4P
To determine
The error in the
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Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes into a home
improvement store in the state capital of Sacramento and buys a leaf blower that is priced at $200. With the 10 percent sales tax, his
total comes to $220. How much of the $220 paid by Ralph will be counted in the national income and product accounts as private
income (employee compensation, rents, interest, proprietors' income, and corporate profits)?
$220
$200
$180
None of these are correct.
I need good explanation. Don't copy from chegg
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Chapter 21 Solutions
Principles of Economics (12th Edition)
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