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:

Process Cost System

A financial recording approach utilized for assigning expenses to alike items which are manufactured in bulk continuously.

Cost Accounting System

Manufacturing-cost accounts that are fully integrated into the general ledger of a company.

Determining Characteristics

The essential attributes or qualities that define and distinguish a product, person, or concept.

Appropriate

Suitable or proper in the circumstances.