A farmer sells wheat to a baker for $3. The baker uses the wheat to make bread, which is sold for $5. The total contribution of these transactions to GDP is: Select one: O a. $8 O b. $3 O c. $2 O d. $5

A farmer sells wheat to a baker for $3. The baker uses the wheat to make bread, which is sold for $5. The total contribution of these transactions to GDP is: Select one: O a. $8 O b. $3 O c. $2 O d. $5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Not use Ai and chatgpt

A: To calculate the nominal GDP for this year, we need to consider the total market value of all goods…

Q: Suppose in 2009, the United States imported $1.5 billion worth of goods and services and sold $4…

A: Imports are the goods purchased from other country. Exports are the goods sold to other country.…

Q: n of the following does not contribute to determining the poten a. The price level p. The capital…

A: Given the following question.

Q: Which of the following items is included in UAE GDP? O a. Unemployment benefits paid by the UAE…

A: A Chinese company imported Aluminum manufactured in UAE as when a country exports goods, it sells…

Q: Compensation of employees is the largest component of GDP when using the expenditure approach to…

A: Gross domestic product (GDP) is the total monetary or market value of all the finished goods and…

Q: What was the value of real GDP in 2016? The economy of La-la-Land produces only movies and popcorn.…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: Suppose that the nominal GDP in 2017 was $3,968 (in thousands) and 2018 is the base year. Now the…

A: GDP or gross domestic product can be defined as a metric that measures the market value of all the…

Q: Question 3 The prices and quantities in 2010 and 2015 were as follows. 2010: Good 1 $20/30 items;…

A: The nominal GDP refers to the value of all the goods and services produced in a given fiscal year at…

Q: QUESTION 7 If the number of worker-hours in an economy is 100 and its labor productivity is $9 of…

A: The economies around the world tend to focus on their growth, and development, where various…

Q: A Texas oil company extracts petroleum and sells it to a refinery for $10,000. After processing, the…

A: GDP: It means the value of finished goods and services in terms of money produced in a country…

Q: Currently, in the U.S. economy, the largest component on the expenditures side of the GDP equation…

A: The economies tend to work upon the basis of the expenditures done by various entities, and the…

Q: Suppose an apartment complex converts to a condominium (i.e., the renters become owners of their…

A: GDP (gross domestic product) of a country is the market value of all final commodities and services…

Q: All of the following are approaches for calculating GDP EXCEPT Select one: O O O O a. production. b.…

A: The Gross Domestic Product refers to the total production level that an economy is capable of…

Q: Which of the following would NOT be included in this year's GDP? Select one: Oa. The tuition fee for…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: An example of "investment" in computing real GDP using the expenditure approach is the purchase of O…

A: -A 100 year old house bought is already included in GDP when it was newly built . They are already…

Q: Consider an economy that only produces the two goods of Pizza and Calzones. What is Nominal GDP if…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: For many everyday economic applications, when economists adjust nominal dollar figures for…

A: The Bureau of Labor Statistics (BLS) produces the buyer price level (CPI). it's the foremost…

Q: 29. Suppose that household consumption is $1,000, investment is $600, government spending is $300,…

A: Given that Household consumption expenditure =$1000 Investment expenditure =$600 Government…

Q: A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a…

A: The total monetary or market worth of all finished products and services produced inside a nation's…

Q: Suppose that nominal GDP per person is €18,000 in 2013, the 2005 GDP deflator is 100, and the 2013…

A: With GDP deflator remains the same in 2005 and 2013, then the Nominal GDP is always equals to real…

Q: 18. If nominal GDP is $5 million and the real GDP is $4 million, what is the GDP deflator? a 0.80 b.…

A: GDP measures the value of all final goods and services produced in an economy over a period of time.…

Q: Consumption expenditures Imports Government purchases of goods and services Construction of new…

A: Gross Domestic Product is the monetary measure of the goods and services in an economy. The…

Question

A farmer sells wheat to a baker for $3. The baker uses the wheat to make bread, which is sold for $5. The total contribution of
these transactions to GDP is:
Select one:
O a. $8
O b. $3
O C. $2
O d. $5

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose a simple economy produces only two goods, pillows and rugs. In the first year, 5O pillows are produced, and sold at $5 each; 11 rugs are produced, and sold at $50 each. In the second year, 54 pillows are produced, and sold for $6 each; 12 rugs are produced, and sold at $52 each. In the third year, 60 pillows are produced and sell for $7.00 dollars each; 14 rugs are produced and sold for 64 dollars each. Calculate real GDP for each year and the growth rate of real GDP from year 1 to year 2 and from year 2 to year 3..
Only typed answer
Personal consumption expenditures $5,207 Interest 425 Corporate profits 735 Government spending 1,406 Depreciation 830 Rental income 146 Gross private domestic investment 1,116 Compensation of employees 4,426 Exports 870 Imports 965 Indirect business taxes 553 Proprietors' income 520 Personal taxes 886 Social Security taxes 432 Transfer payments 376 In Exhibit 15-7, disposable personal income (DI) is: a. $5,127 billion. b. $6,254 billion. c. $6,495 billion. d. $5,608 billion.
You Answered Suppose that the economy is made up of a single firm, which pays $300rin interest payments, pays $300 in its labour costs, and pays $2,000 in rental costs for its building. The rest of its revenues are paid out to the owners of this firm. Correct Answer This firm also produces $10,000 of its final product, selling $7,000 to domestic consumers, keeping $2,000 to replenish its inventories, and selling the rest abroad. In this little economy, using the Income Approach, what is the total amount of Business Profits? Note: Round your answers to two decimal places. 8,700 9.400 margin of error +/-0.1
H10.
A final good or service is something that O retains no value when factored into the GDP O is not a component of another good or service O does not factor into the GDP is the component for a final product
A farmer sells cucumbers to a food processor for $1.50 per pound. The food processor makes the cucumbers into pickles and sells each jar of pickles to a grocery store for $2.50. The grocery store sells each jar of pickles for $3.00. How much do these transactions add to GDP? b. $7.00 c. $1.50 d. $3.00