Suppose That the Total Production of an Economy Consists of 10

question 52

Multiple Choice

Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?

• A)This economy produces two-thirds oranges and one-third candy bars.
• B)This economy produces food valued at $1.20.
• C)This economy produces 15 food items.
• D)This economy produces $7.00 worth of food.

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Definitions:

Gifts and Gratuities

Items or payments given voluntarily without payment in return, often as a gesture of goodwill or for promotional purposes.

Commercial Bribery

The unethical or illegal practice of influencing the decisions of business personnel through unauthorised gifts or payments.

Perception of Bias

The belief or view that a person or organization is biased, leading to questions about fairness or objectivity.

Reciprocity

A mutual exchange of privileges or interactions between two parties, often used in trade and negotiations.