Suppose a Jar of DeLux Popcorn That Is Ultimately Sold

question 75

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 2009?

• A)$0.50
• B)$2.00
• C)$2.50
• D)$3.00

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Definitions:

Front-end Load

A fee paid when purchasing shares of a mutual fund or other investment, typically used to cover commission expenses.

Expense Ratio

A measure depicting the percentage of a fund's assets that are used for administrative and other operating expenses, directly affecting investors' returns.

Mutual Fund

An investment company pooling and managing funds of investors.

Significant Leverage

Utilization of borrowed money or financial instruments to increase the potential return of an investment.