In a given year, suppose a company spends $300 million on intermediate goods and $500 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals:
A) $300 million.
B) $500 million.
C) $200 million.
D) $100 million.
E) $400 million.

Question

Quizplus · Accepted Answer

The Answer of In a given year, suppose a company spends $300 million on intermediate goods and $500 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals:
A) $300 million.
B) $500 million.
C) $200 million.
D) $100 million.
E) $400 million.

In a Given Year, Suppose a Company Spends $300 Million