One Bag of Flour Is Sold for $1

question 46

Multiple Choice

One bag of flour is sold for $1.00 to a bakery,which uses the flour to bake two loaves of bread that are sold for $3.00 each to consumers.A second bag of flour is sold for $1.00 to a grocery store,which sells it to a consumer for $2.00.Taking these transactions into account,what is the effect on GDP?

• A) GDP increases by $5.00.
• B) GDP increases by $7.00.
• C) GDP increases by $8.00.
• D) GDP increases by $9.00.

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Definitions:

Psychomotor Retardation

A slowing-down of thought and reduction of physical movements in an individual, often observed in major depressive disorders.

Learned Helplessness

A possible explanation for some depressive behavior, based on findings that organisms in aversive situations learn to show inactivity when their behavior is not reinforced.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli, which have qualities of real perception.

Ideas of Persecution

False beliefs that one is being harassed, harmed, poisoned or conspired against by others, often seen in paranoid disorders.