The Purchase of Rice Produced This Period Is Included in GDP

question 84

Multiple Choice

The purchase of rice produced this period is included in GDP if the rice is

• A)used in a meal a restaurant sells during the same period they buy the rice.
• B)purchased by a family who uses it to make tuna casserole for its supper.
• C)purchased by a frozen food company to increase its inventory.
• D)B and C are correct.

---

Definitions:

Common Stock

Shares of ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Long-term Debt

Debt that is not due within the next year and is often used to purchase or invest in significant assets or finance ongoing operations.

Indirect Approach

A method used in accounting to prepare the cash flow statement, where non-cash activities are adjusted to net income to calculate cash flow from operating activities.