Business, 25.03.2020 23:35 barnettboy76
Acme Steel Works produces 2000 tons of pig iron worth $20 per ton. It puts 500 tons of pig iron into storage for next year and uses the rest (1500 tons of pig iron) to produce 1000 tons of steel worth $60 per ton. The entire production of steel is then sold. Overall, in production, Acme pays wages of $25,000, it buys $20,000 worth of coal and $10,000 worth of vanadium, and pays $3,000 in business taxes.
Acme's contribution to GDP is:
$20,000.
$67,000
$70,000.
$100,000.
$40,000
$50,000.
Answers: 1
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