One Bag of Flour Is Sold for $1

question 61

Multiple Choice

One bag of flour is sold for $1.00 to a bakery,which uses the flour to bake bread that is sold for $3.00 to consumers.A second bag of flour is sold for $1 to a grocery store who sells it to a consumer for $2.00.Taking these four transactions into account,what is the effect on GDP?

• A)GDP increases by $3.00.
• B)GDP increases by $5.00.
• C)GDP increases by $6.00.
• D)GDP increases by $7.00.

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Definitions:

Mechanism

The detailed process or pathway by which a chemical reaction occurs, including the step-by-step sequence of elementary reactions.

Carbon Tetrachloride

A volatile, colorless liquid with a slightly sweet smell, historically used in fire extinguishers and as a solvent, but now known to be a harmful carcinogen.

Mechanistic Steps

The sequential individual reactions or movements of electrons that occur during the course of a complex chemical reaction.

Chloromethane

A colorless, flammable gas with a mild sweet odor, used in manufacturing and as a refrigerant; its chemical formula is CH3Cl.