If You Buy a Burger and Fries at Your Favorite

question 37

Multiple Choice

If you buy a burger and fries at your favorite fast food restaurant,

• A)then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.
• B)then GDP will be higher,but consumption spending will be unchanged.
• C)then GDP will be unchanged,but consumption spending will be higher.
• D)then both GDP and consumption spending will be higher.

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Definitions:

Mental Categories

Cognitive classifications used by the brain to organize experiences and concepts to simplify the processing of information.

Sports Car

A vehicle designed for high speed and performance, often featuring a sleek, compact body and powerful engine for dynamic driving.

Natural Concepts

Mental representations of objects and events drawn from our direct experience, without formal instruction.

Formal Concepts

Abstract ideas or mental symbols that are typically associated with corresponding objects, events, or relations in reality.