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Question
Households receive a total income of $5 million. Of this, $3.5 million are wages received for labor services, $1 million are rental payments, and $250,000 are interest payments received. What are the costs of production and profits equal to respectively?
A) $5 million; $500,000
B) $5 million; $250,000
C) $4.75 million; $250,000
D) $4.75 million; 0
Answer
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