How much of each dollar spent by a consumer ultimately becomes income to someone else?
A) 100 percent
B) 67 percent
C) It depends on how much labor was needed to produce the good the consumer buys.
D) It depends on how much overhead there is in the distribution channel that delivers the good from the manufacturer to the consumer.

Question

Quizplus · Accepted Answer

100 percent of each dollar spent by a consumer ultimately becomes income to someone else. This is because every dollar spent in the economy eventually goes towards paying salaries, wages, and profits to individuals and businesses.

How Much of Each Dollar Spent by a Consumer Ultimately