Question

If households spend $55 billion on goods and $45 billion on services, how much in revenues do businesses receive in the product market?

Answer 1

Answer: $100 dollars

Explanation: business revenue refers to the income accrued from normal business activities. It also referred to as sales or turnover.

In this scenario,

Business revenue = Total Household expenditure

In this case, Total household expenditure = Amount spent on goods + Amount spent on services

Therefore,

Business revenue = $55 billion + $45 billion = $100 billion