8. A farmer grows a bushel of wheat and sells it to a miller for birr 8.00. The miller turns the wheat into flour and then sells the flour to a baker for birr 20.00. The baker uses the flour to make bread and sells the bread to an engineer for birr 40.00.The engineer eats the bread. What is the value added by each person? How much value is added as GDP component?

8. A farmer grows a bushel of wheat and sells it to a miller for birr 8.00. The miller turns the wheat into flour and then sells the flour to a baker for birr 20.00. The baker uses the flour to make bread and sells the bread to an engineer for birr 40.00.The engineer eats the bread. What is the value added by each person? How much value is added as GDP component?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000worth of oranges to consumers, uses the rest to make orange juice that is sold toconsumers for $3 million.a. What is the Citrus Growers Contribution to GDP ?b. What is the total GDP contribution of the entire production process?
A farmer grows a bushelof wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and sells it to a baker for $3.00. The bakeruses the flour to make a loaf of bread and sells it to an engineer for $6.00. The engineereats the bread. Compute: a. value added at each stage of production b. GDP
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