A Good Is Produced by a Firm in 2009,added to the Firm's

question 48

Multiple Choice

A good is produced by a firm in 2009,added to the firm's inventory in 2010,and sold to a household in 2010.As a result,on net,

• A)2009 GDP increased and 2010 GDP decreased.
• B)2009 GDP decreased and 2010 GDP increased.
• C)2009 GDP did not change and 2010 GDP increased.
• D)2009 GDP increased and 2010 GDP did not change.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or the volume of output.

Lease

A contract by which one party conveys land, property, services, or goods to another for a specified period, usually in exchange for periodic payments.

Bouquets

A collection or arrangement of flowers.

Short-Run Marginal Cost

The increase in cost a company faces to produce one additional unit of output when some inputs are fixed in the short term.