Assume That a Tire Company Sells Four Tires to an Automobile

question 105

Multiple Choice

Assume that a tire company sells four tires to an automobile company for $400, another company sells a Blu-ray 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.

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Definitions:

Foreign Invaders

Pathogenic organisms or substances from outside the body that can cause disease or immune responses when they enter the body.

Fungi

A kingdom of spore-producing organisms feeding on organic matter, including molds, yeast, mushrooms, and toadstools.

Type B Behavior

A pattern of behavior characterized by a relaxed, patient, and non-competitive manner.

Time Urgency

A feeling of pressure to complete tasks and activities quickly, often associated with stress and anxiety.