Sophia Just Bought Shares of IBM Stock for $20,000 and Paid

question 97

Multiple Choice

Sophia just bought shares of IBM stock for $20,000 and paid a $300 commission to her broker.How did this impact GDP?

• A)GDP increased by $20,300
• B)GDP increased by $300
• C)GDP increased by $20,000
• D)GDP increased by $19,700
• E)it had no impact on GDP

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Definitions:

Ending Inventory

The total value of all unsold goods that a company has at the end of an accounting period.

Beginning Inventory

The value of the inventory that a company has at the start of an accounting period, before any purchases or sales have occurred.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Consignment

A sales arrangement in which goods are placed in the care of another, but ownership and title remain with the supplier until the goods are sold.