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:

Dissonance

A state of conflict or inconsistency between a person's beliefs, attitudes, or actions, often leading to discomfort and change.

Cognitive Dissonance

A psychological phenomenon in which an individual experiences discomfort or distress from holding two or more contradictory beliefs, ideas, or values at the same time.

Opinions

Personal views, beliefs, or judgments that may not be based on fact or knowledge.

Weak Threat

A threat perceived as having little or no power to inflict harm or consequences, often resulting in minimal behavioral change.