Part of a Bridge Built by the Government of Ritzland

question 177

Multiple Choice

Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed.If the total cost of building the bridge was $4 million,and then it costs $3 million to repair it,which of the following will happen in this scenario,everything else remaining unchanged?

• A) Ritzland's GDP will decrease by $4 million.
• B) Ritzland's GDP will increase by $3 million.
• C) Ritzland's GDP will increase by $7 million.
• D) Ritzland's GDP will increase by $1 million.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a specific period.

LIFO

An acronym for "Last In, First Out," a method used in inventory management and accounting to value inventory and calculate cost of goods sold.

Taxable Income

Taxable income is the amount of an individual's or a company's income used to calculate how much tax they owe to the government in a given tax year.

Tax Advantage

Financial benefits granted by government taxation policies, such as deductions, exclusions, or credits, to encourage certain activities or investments.