A Good Is Produced by a Firm in 2009,added to the Firm's

question 48

Multiple Choice

A good is produced by a firm in 2009,added to the firm's inventory in 2010,and sold to a household in 2010.As a result,on net,

• A)2009 GDP increased and 2010 GDP decreased.
• B)2009 GDP decreased and 2010 GDP increased.
• C)2009 GDP did not change and 2010 GDP increased.
• D)2009 GDP increased and 2010 GDP did not change.

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Definitions:

Significant Influence

Refers to the capacity of an investor to affect the financial and operating policies of an investee through ownership, without having complete control.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of its profits and assets.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control those policies, typically associated with owning a significant but not majority share of the investee.

Fair Value

The price that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.