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Farmer John Produces Oranges

Question 2

Multiple Choice

Farmer John produces oranges.He sells half of his inventory to people at his roadside stand for $20,000 and sells the other half to Tropicali for $15,000.Tropicali uses the oranges to make orange juice,which it sells to consumers for $25,000.The impact of these transactions on GDP is:


A) $20,000.
B) $45,000.
C) $60,000.
D) $30,000.
E) $25,000.

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