Suppose the Clothing Manufacturer, Eddie Bauer, Produced 10,000 Pairs of Jeans

question 35

Multiple Choice

Suppose the clothing manufacturer, Eddie Bauer, produced 10,000 pairs of jeans in 2005 but sold only 9,200 pairs. How will this be recorded in GDP accounts?

• A) The 9,200 pairs that were sold will be counted under the consumption component of GDP in 2005 and the 800 pairs that were not sold will not be included in GDP.
• B) The 10,000 pairs of jeans produced would be counted as investment and will be included in GDP in 2005.
• C) The 9,200 pairs sold will be counted as consumption and the 800 pairs that were not sold will counted as investment and both items will be included in GDP in 2005.
• D) The 9,200 pairs sold will be counted under the consumption component of GDP in 2005 and the 800 pairs that were not sold will be included in GDP in 2006.

---

Definitions:

Individualistic Cultures

Societies that emphasize personal achievements and rights, fostering an independence and self-reliance among its members.

Drive for Consistency

An internal push within individuals to ensure that their beliefs, attitudes, and behaviors are all in agreement.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort when holding two or more conflicting cognitions (beliefs, attitudes, or values), leading to an alteration in one of the cognitions to reduce the discomfort.

Alcoholics Anonymous

A self-help organization and mutual aid fellowship for individuals who struggle with alcoholism, offering peer support to achieve and maintain sobriety.