farmer sells five pounds of pecans to a Smith’s Fresh Pecans for $10. Smith’s Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP? a. $22.50 b. $29.50 C. $21.50 D. $31.50

farmer sells five pounds of pecans to a Smith’s Fresh Pecans for $10. Smith’s Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP? a. $22.50 b. $29.50 C. $21.50 D. $31.50

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 2CQQ

See similar textbooks

Similar questions

Which of the following are included in this year’s GDP? Which are excluded or included. a. Interest received on an AT&T corporate bond: b. Social Security payments received by a retired factory worker: c. Unpaid services of a family member who painted the family home: d. Income of a dentist from the dental services she provided: e. A monthly allowance that a college student receives from home: f. Money received by Josh when he resells his nearly brand-new Honda automobile to Kim: g. The publication and sale of a new college textbook: h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay: i. A $2 billion increase in business inventories: j. The purchase of 100 shares of Alphabet (the parent company of Google) stock:
Value-Added to GDP Question. Production Value of Input Value of Output Value Added Coffee Bean farming $0 A B Processing Coffee $7.00 C $3.00 Distributing Coffee D 11.50 E Selling Coffee to customers F G $4.50 a. Fill in the table above. The values for values of inputs, outputs, and value added. I listed them as A, B, C, D, E, F, G. So in your answer in the text box just type is A = ? B = ? C = ? D = ? E = ? F = ? G = ? 1. How much is added to GDP from this production activity?
A US company produces $20000 worth of shirts in 2019. However, only $15000 worth of the shirts are sold to consumers in 20019 and the rest are still lying at the producer’s warehouse. Group of answer choices 1. The entire $20000 worth of shirts should be added to Consumption when calculating 2019 GDP 2. The $5000 worth of unsold shirts should be added to Exports when calculating 2019 GDP 3. The entire $20000 worth of shirts should be added to Investment when calculating 2019 GDP 4. The $5000 worth of unsold shirts should be added to Investment when calculating 2019 GDP
Q12. An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last year, she purchased 7000 worth of scrap metal. With the steel, she produced 10 authentic sculptures that she sold for 1,000 each to a local art dealer. The art dealer then sold all of the sculptures to art collectors for an average of 1.200 each. Between the artist and the dealer, what was the total value added to GDP? Pick one answer. A. 5000 B. 10000 c. 15000 D. 12000
Indicate whether each of the following transactions is included or not included in the GDP of the United States. a. A textbook is purchased by a student in New Jersey in yesterday. The book was made Hawaii just last week. b. Forty pounds of apples grown by a Washington farmer and traded this morning to his neighbor for ten pounds of honey. c. A hundred dollars paid to you for babysitting last night at a home near the university. The $100 was in cash with no records kept, i.e., under the table. d. The $90 purchase of materials by you made today at the Home Depot in Springfield. You plan to build a doghouse in your backyard yourself. The doghouse is for your dog. e. A fighter jet produced in Texas last month and sold this morning to Saudi Arabia. f. Eight tons of coal mined in West Virginia last month was sold today to a power plant in Tennessee. The power plant immediately started using the coat to generate power for over 30,000 homes and businesses in the Nashville area. g. Tom retired…
Which of the following are production activities that are included in GDP? Which are not?a. Mr. King performs the service of painting his own house instead of paying someone else to do it.b. Mr. King paints houses for a living.c. Mrs. King earns income from parents by taking baby photos in her digitalphotography studio.d. Mrs. King takes photos of planets and stars as part of her astronomy hobby.e. E*Trade charges fees to process Internet orders for stock trades.f. Mr. Ho spends $10,000 on shares of stock via an Internet trade order andpays a $10 brokerage fee.g. Mrs. Ho receives a Social Security payment.h. Ms. Hernandez makes a $300 payment for an Internet-based course onstock trading.i. Mr. Langham sells a used laptop computer to his neighbour
As an economist with the World Bank you have been asked to measure the Gross Domestic Product for the US for 2019. You are told that the private consumption, gross domestic investment, government purchases and exports all add up to $ 24 trillion. You later learn that imports to the US in 2019 were $4 trillion. To get GDP, you should A. Ignore the $ 4 trillion because exports have already been included in the $ 24 trillion B. Add $ 4 trillion to $24 trillion because imports are used as inputs in the production of other goods in the US C. None of the above D. Subtract $4 trillion from $24 trillion because imports are not part of US domestic output
Q.2. John a farmer sells tomatoes to Joseph the tomato sauce manufacturer for K350 . Joseph makes three bottles of tomato sauce , each of which has a market price of K700 . Japhen buys one of them , while the other two remain on the shelf of Joseph's Shop to be sold later . What is the value of GDP ?
Calculate the following using information from the table below: i. GDP at Market Price ii. GNI at market price iii. Net National Income iv. National Disposable Income Purchase of mask by households Clothing Purchase of food to be used by households Investment in housing Change in inventory Building of new public hospital Import Export Tax Subsidies Salaries to workers abroad Compensation from workers abroad Depreciation Net Current transfer 12,000 45,500 20,000 100,000 10,000 2,000,000 5,000 75,000 4,000 1,000 7,500 3,500 300 1,500
In recent decades, women have worked more hours in paid jobs and fewer hours in unpaid housework. a. How would this increase in work hours affect GDP? b. Explain why this increase in measured GDP will overstate the true increase in output. Also explain how a set of augmented national accounts which includes home production would treat this change from nonmarket work to market work. c. Explain the paradox, “When a person marries his or her gardener, GDP goes down.”
stuck in homework
Which of the following would be counted as afinal good for inclusion in GDP?a. A piece of glass bought this year by a consumerto fix a broken window.b. A sheet of glass produced this year by Ford touse for windows in a new car.c. A tire produced this year and sold to a carmaker for a new car sold this year.d. None of the answers are correct.