Assume That a Tire Company Sells 4 Tires to an Automobile

question 51

Multiple Choice

Assume that a tire company sells 4 tires to an automobile company for $400, another company sells a compact disc player for $500, and the automobile company puts all of these items in or on a car that it sells for $20,000. In this case, the amount from these transactions that should be counted in GDP is:

• A) $20,000.
• B) $20,000 less the automobile company's profit on the car.
• C) $20,900.
• D) $20,900 less the profits of all three companies on the items that they sold.

---

Definitions:

Adaptations

Traits that have evolved through natural selection, allowing organisms to survive and reproduce in their environments.

De Novo

A Latin expression meaning "from the beginning," used to describe genes, mutations, or structures that are newly formed and not inherited from parent organisms.

Modifications

Alterations or changes made to objects, organisms, or systems, often aimed at improving function or performance.

Complex Adaptions

Traits that have evolved through the specific and intricate interplay of multiple genetic and environmental factors to solve specific problems of survival or reproduction.