Question

Total production of final goods and services equals total expenditures. They both equal _____.
total income
government taxes
producer's profits

Answer 1

Total production of final goods and services amounts to its total expenditures which are both equal to a producer's profits. The amount of money collected from the goods and services minus the producer's total expenditures refers to his overall profits. This is the basic computation of investments made in business.

Answer 2

C) producer's profits