Exam 6: Measuring Total Output and Income

The smallest component of income generated in the production of U.S. GDP is:

Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses. Table 6-6 -Refer to Table 6-6. Suppose the value added tax is 10%. What is the amount paid by Fuller Mill to Acme Mining?