You Buy 100 Shares of IBM Stock at $100 Per

question 14

Multiple Choice

You buy 100 shares of IBM stock at $100 per share and pay $150 commission.How much will this transaction add to GDP?

• A)zero
• B)$150
• C)$10,000
• D)$10,150

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Definitions:

Level of Activity

A measure of the volume of production or operations, often influencing costs and profitability in a business.

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.