An organic farm sells tomatoes for 50 cents each at the local ...

[vinney12]

An organic farm sells tomatoes for 50 cents each at the local farmers market. It only cost them (in the accounting measure) 5 cents to produce each tomato. What happens to GDP with the sale of each tomato?
 
  A) It increases by 5 cents.
  B) It increases by 45 cents.
  C) It increases by 50 cents.
  D) It increases by 55 cents.
  E) It remains unchanged because organic farmers try not strive for profit.

Question 2

Drawing conclusions from international comparisons of GDP are difficult to assess because
 
  A) GDP is understated in poorer countries because much of the work that people do is not provided in markets.
  B) GDP cannot be adequately evaluated as a measure of people's welfare or well-being.
  C) without adjusting for purchasing power parity, GDP comparisons might very well be meaningless.
  D) all the above reasons hold true.

[debra928]

Answer to Question 1

C

Answer to Question 2

D

[vinney12]

TYSM

[mochi09]

Gracias!