In 2014, a farmer grows and sells $3 million worth of corn to Big Flakes Cereal Company. Big Flakes Cereal Company produces $8 million worth of cereal in 2014, with sales to households during the year of $7 million. The unsold $1 million worth of cereal remains in Big Flake Cereal Company's inventory at the end of 2014 . The transactions just described contribute how much to GDP for 2014?
a. $3 million
b. $7 million
c. $8 million
d. $11 million
c
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Which of the following is not one of the basic legal forms of business organization in the United States?
a. corporation. b. syndicate. c. sole proprietorship. d. partnership.
With respect to the demand side, the classical model excludes
a. exogenous changes in investment b. exogenous changes in government spending. c. exogenous changes in taxes. d. exogenous changes in money demand. e. All of the above
For every choice a person makes it can be assumed that
A) the chooser has full knowledge of the situation. B) some opportunity cost was involved. C) there is a fifty-fifty chance the choice was the wrong one. D) a good is involved and satisfaction is gained.
Consider the two following statements: I. x is an inferior good. II. x exhibits Giffen's Paradox. Which of the following is true?
a. I implies II, but II does not necessarily imply I. b. II implies I, but I does not necessarily imply II. c. I and II are statements of the same phenomenon.