Suppose a Jar of DeLux Popcorn That Is Ultimately Sold

question 137

Multiple Choice

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: $$\begin{array} { l c c } \text { Name of Company } & \text { Revenues } & \text { Cost of Purchased Inputs } \\\text { Fulton Family Farm } & \$ 0.50 & 0 \\\text { DeLux Popcorn Co. } & \$ 2.50 & \$ .50 \\\text { Friendly Groceries } & \$ 4.00 & \$ 2.50\end{array}$$ If the corn was grown and the jar of popcorn produced in the year 2009, but the jar was sold at Friendly Groceries in the year 2010, what is the contribution of these transactions to GDP in the year 2010?

• A) $0.00
• B) $0.50
• C) $1.50
• D) $4.00

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Definitions:

Service Revenue

Revenue received by a business from the services it offers to its clients.

Normal Balance

The side of an account, whether debit or credit, where increases in the account are recorded, determined by the account's classification in the accounting equation.

Capital Account

A national account that shows the net change in asset ownership for a country.

Revenue Account

An account that tracks the income earned from a company's primary operations.