You purchase a bag of chocolate chips for $3, a bag of flour for $1, a bag of sugar for $.50, a half dozen eggs for $.50, and a half pound of butter for $2. You use all these ingredients to make three dozen cookies. Your roommate offers you $15 for them, and you happily accept. How much does this process contribute to GDP?

Speculators who believe the world-wide demand for cocoa products is going to increase enormously next year will cause

A) less cocoa to be consumed next year. B) less cocoa to be consumed this year. C) less cocoa to be produced next year. D) less cocoa to be produced this year. E) none of the above since speculation only affects price.

Using the income approach, the largest portion of GDP is:

a. employee compensation. b. net interest. c. rent. d. profits. e. depreciation.