The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1000 in taxes, and has profits of $3000. What is its value added?
A. $19,000
B. $39,000
C. $59,000
D. $3000
Answer: B
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Efficiency wages:
A) can decrease costs if workers' productivity varies directly with wage rates. B) can be used to reduce wage rigidity. C) can lead to wage rigidity. D) can increase profits if productivity of workers is fixed.
For an individual LM curve, the money supply is assumed to
A) be constant. B) grow at a rate equal to the interest rate. C) grow at a rate equal to the growth rate in income. D) grow at a rate equal to the marginal propensity to consume.
Which of the following is currently the primary source of funding for R&D?
a. Private industry b. Universities and colleges c. Nonprofit organizations d. Federal government
Related to the Economics in Practiceon page 391: Refer to Table 19.4. If income increases from $30,000 to $40,000, the marginal tax rate is
A) 5%. B) 20%. C) 35%. D) indeterminate from this information.