A farmer grows a bushel of wheat and sells it to a miller for $1,the miller turns the wheat into floar and sells it to a baker for 3$.
The baker uses the floar to make a floar and sells it to consumer for 6$.
FIND
1.Value added in each stage of production?
2.GDP?
NOTE; The value of the finished goods already includes the value of the intermediate goods.So, including intermediate goods in GDP would be 'double counting'
1
Expert's answer
2014-11-13T10:16:52-0500
1.The value added in 1 stage of production is $1, in 2 stage is 3 - 1 = 2$, in 3 stage 6 - 3 = $3. 2.GDP is the final value added of production during all stages, so: GDP = 1 + 2 + 3 = $6.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment