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Suppose a Firm Buys $3000 Worth of Inputs from Other

Question 57

Multiple Choice

Suppose a firm buys $3000 worth of inputs from other firms,hires $2000 worth of labour services,and has sales revenue of $7500.The firm's resulting profit is $2500.If the GST (a value-added tax) rate is 5%,this firm will pay ________ in GST.


A) $0
B) $125
C) $225
D) $375
E) $2500

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