A Farmer Grows Wheat and Sells It to a Bakery

question 141

Multiple Choice

A farmer grows wheat and sells it to a bakery for $5.The bakery uses the wheat to bake bread and sells it to a distributor for $20.The distributor sells the bread to a supermarket for $30,which then sells the bread to customers for $50.Which of the following is true?

• A)The value added by the distributor is $30.
• B)The value added by the supermarket is more than that added by the bakery.
• C)GDP rises by $50 plus the value added at each stage of production.
• D)Counting the value added at each stage instead of counting the final selling price creates a problem of double counting.
• E)The value added by the farmer is $20 because the wheat,which is worth $5,is necessary for each of the three remaining stages of production.

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Definitions:

Behavior Modification

A method of changing behavior through a systematic program based on the learning principles of classical conditioning, operant conditioning, or observational learning.

Learning Techniques

Strategies or methods used to facilitate the acquisition of knowledge, skills, or understanding.

Selective Thinking

The cognitive process where an individual focuses on specific aspects of a situation while ignoring others, which can reinforce beliefs or biases.

Group Setting

A social context in which two or more individuals interact or work together towards common goals or share experiences.