If an Economy Produces 3 Million Oranges That Sell for $0.25

question 68

Multiple Choice

If an economy produces 3 million oranges that sell for $0.25 each and 100,000 cars that sell for $25,000 each, then when the market value of total output is calculated:

• A)oranges receive a greater weight than cars.
• B)oranges receive the same weight as cars.
• C)oranges receive a smaller weight than cars.
• D)the market value of oranges is excluded.

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Definitions:

Capital Gains

The profit from the sale of property or an investment when the selling price exceeds the original purchase price.

Capital Losses

The loss incurred when a capital asset (like stocks or real estate) is sold for less than its purchase price.

Capital Gain Distributions

The payments made to mutual fund shareholders from the fund's sale of stocks or assets, subject to capital gains taxes.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.