Suppose That Apple Computer Buys Computer Components for $10,000 and Uses

question 23

Multiple Choice

Suppose that Apple computer buys computer components for $10,000 and uses them to make ipods that they sell to Best Buy for $30,000.Best Buy sells these ipods for $32,000.As a result,GDP has risen by:

• A)$22,000
• B)$2,000
• C)$20,000
• D)$32,000

---

Definitions:

Erie Canal

A historic canal in New York, completed in 1825, which played a critical role in the commercial expansion of the United States.

Lake Erie

One of the five Great Lakes in North America, bordered by Ontario, Canada, and several U.S. states, known for its fisheries, recreation, and historical significance in trade and transportation.

Hudson River

A major river in New York State that flows from the Adirondack Mountains down to New York City, historically significant for trade and transportation.

Market Economy

An economic system where supply and demand from consumers drive the production and pricing of goods and services.