Use the Following to Answer Questions

question 160

Multiple Choice

Use the following to answer questions:
-(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2014 is the base year, real GDP in 2014 was:

• A) $400.
• B) $420.
• C) $425.
• D) $445.

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Definitions:

Transaction

An exchange between a business and one or more external parties to a business or a measurable internal event such as the use of assets in operations.

Exchange

A marketplace where securities, commodities, derivatives and other financial instruments are traded.

Unearned Revenue

Money received by a company for goods or services that have yet to be delivered or performed.

Liability

Financial obligations or debts that a company owes to outside parties, which must be settled over time through the transfer of economic benefits.