You Purchase a Bag of Chocolate Chips for $3, a Bag

question 102

Multiple Choice

You purchase a bag of chocolate chips for $3, a bag of flour for $3, a bag of sugar for $2.00, a half dozen eggs for $1.50, and a half pound of butter for $2.50. You use all these ingredients to make three dozen cookies. Your roommate offers you $15 for the freshly-baked cookies, and you happily accept. How much does this process contribute to GDP?

• A) $12
• B) $15
• C) $22
• D) $8

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Definitions:

Social Security Taxes

Taxes collected from employees and employers to fund the Social Security program, which provides benefits for retirees, disabled workers, and survivors.

Advance Payments

Payments made before goods or services are received, often as a show of faith or to secure a particular transaction.

Estimated Federal

An approximation related to the United States federal government, often referring to projected budgets, taxes, or revenues.

State Income Taxes

Taxes levied by individual states on the income earned by residents or entities within their jurisdiction.