Company DEF Produces Gizmos

question 78

Multiple Choice

Company DEF produces gizmos. One particular batch cost $50,000 to produce. Because market conditions were bad at the time of sale, they were sold at a loss for $40,000. The value of the gizmos included in the GDP is

• A) $10,000.
• B) $40,000.
• C) $50,000.
• D) impossible to compute because there is negative profit.

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Definitions:

Intellectual

Pertaining to or involving the ability to think and understand ideas and information at a high level of complexity.

Assimilation

The cognitive process of integrating new information into existing cognitive schemas, perceptions, and understanding.

Adaptation

The process by which organisms adjust to changes in their environment to survive and reproduce.

Modification

The act of changing something or adjusting it to improve it or to make it more suitable for a particular purpose.