In 2009, Corny Company Grows and Sells $2 Million Worth

question 282

Multiple Choice

In 2009, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes corn flakes. Tasty Cereal Company produces $6 million worth of corn flakes in 2009, with sales to households during the year of $4.5 million. The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company's inventory at the end of 2009. The transactions just described contribute how much to GDP for 2009?

• A)$4.5 million
• B)$6 million
• C)$6.5 million
• D)$8 million

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Definitions:

Shopping Product

A type of product that consumers purchase after comparing quality, price, and style from several sellers.

Specialty Product

A product that is characterized by its unique attributes, high level of quality, or brand identity, often leading consumers to put forth a significant effort in purchasing it.

Supplies

Materials or items used in the operation of a business or needed to provide services.

Unsought Product

Products that consumers do not actively seek out to buy, and may purchase only out of necessity or unforeseen need, such as emergency services or life insurance.