Brady pays $37,450 for a new car, including a federal excise tax of $700 and a state sales tax of $1,750. The indirect business tax value added to GDP under the income approach for this purchase is
A) $2,450 because this is income for the government.
B) $2,450 because this is profit for the firm.
C) $700 because only federal taxes are included in indirect business taxes; state taxes are excluded.
D) $1,750 because only state taxes are included in indirect business taxes; federal taxes are excluded.
Correct Answer:
Verified
Q47: Dividends, retained earnings, and corporate income taxes
Q48: Using the income approach, an estimate of
Q49: Exhibit 5-10 GDP data (billions of dollars)
Q50: Exhibit 5-11 GDP data (billions of dollars)
Q51: Discuss the components of GDP using the
Q53: Exhibit 5-5 Gross domestic product data
Q54: Victor works as a manager of a
Q55: Exhibit 5-10 GDP data (billions of dollars)
Q56: The unreported or illegal production of goods
Q57: Depreciation or consumption of fixed capital measures:
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents