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:

Aggression

Behavior intended to harm or injure another being, either physically or psychologically.

Domestic Violence

A pattern of abusive behavior in any relationship that is used by one partner to gain or maintain control over another intimate partner.

Instrumental

Relating to an action or tool that is a means to achieve an end or goal.

Heterosexual

A sexual orientation characterized by an enduring pattern of emotional, romantic, or sexual attractions exclusively to persons of the opposite sex.