Suppose That Mr

question 173

Multiple Choice

Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which it sells to Hamburger Heaven for $11,000. Hamburger Heaven also buys $20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers, which are sold for $5 each. How much do these transactions add to GDP?

• A) $86,000
• B) $36,000
• C) $31,000
• D) $50,000

---

Definitions:

Cognitive Development

Cognitive Development is the process by which a child learns to reason, solve problems, and gain knowledge through interaction with the world around them, as described in theories such as those by Piaget.

Piaget's Stages

A theory of cognitive development devised by Jean Piaget, which describes how children's understanding of the world changes through four stages of development.

Object Permanence

A cognitive development milestone in which an infant realizes that objects continue to exist even when they cannot be seen or heard.

Sensorimotor

The stage in Jean Piaget's theory of cognitive development where infants learn to interact with their environment through physical actions, from birth to about 2 years of age.