When a Firm Produces and Sells a Refrigerator Worth $1,000,its

question 64

Multiple Choice

When a firm produces and sells a refrigerator worth $1,000,its contribution to the gross domestic product (GDP) on the income side is measured by:

• A)the price paid by the consumer.
• B)the investment made by the firm to manufacture the refrigerator.
• C)the stock of inventories used by the firm to manufacture the refrigerator.
• D)the cost of raw materials used by the firm to manufacture the refrigerator.
• E)the sum of the wages,interest,and rent paid by the firm's owners and the profit of the firm.

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Definitions:

Withdrawal

The act of taking money from an account, or the removal of assets or resources, often applicable in banking and partnerships.

Telephone Bill

A telephone bill is a periodic charge levied on individuals or businesses for the use of telecommunication services.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net profit or loss.