Which of the Following Actions Will Decrease the Gross Domestic

question 102

Multiple Choice

Which of the following actions will decrease the gross domestic product (GDP) ?

• A)Tom's alarm clock breaks,so he buys a new one.
• B)Tom buys a new alarm clock because he tends to sleep through the first alarm.
• C)Tom's alarm clock breaks.He now oversleeps and has to buy a cup of coffee on the way to work instead of making it at home.
• D)Tom gets fired for being late often after his alarm clock breaks.
• E)Tom sells his broken alarm clock and uses the money to buy some French fries.

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Definitions:

Cups Of Soup

A measure of quantity often used in food service to represent single servings of soup.

Trade

Trade involves the exchange of goods, services, or both, between parties, which can be within an economy (domestic trade) or between economies (international trade).

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity.

Opportunity Cost

The price paid for not selecting the next most favorable alternative when a choice is made.