George and Al, stranded on an island, use clamshells for money. Last year George caught three hundred fish and five wild boars. Al grew 200 bunches of bananas. In the two-person economy that George and Al set up, fish sell for one clamshell each, boars sell for ten clamshells each, and bananas go for five clamshells a bunch. George paid Al a total of thirty clamshells for helping him to dig bait for fishing, and also he purchased five of Al's mature banana trees for thirty clamshells each. Explain what the value of GDP is (in clamshells) in George and Al's island. Using economic terminology and your understanding of GDP explain why you included or excluded each item
George and Al, stranded on an island, use clamshells for money. Last year George caught three hundred fish and five wild boars. Al grew 200 bunches of bananas. In the two-person economy that George and Al set up, fish sell for one clamshell each, boars sell for ten clamshells each, and bananas go for five clamshells a bunch. George paid Al a total of thirty clamshells for helping him to dig bait for fishing, and also he purchased five of Al's mature banana trees for thirty clamshells each. Explain what the value of GDP is (in clamshells) in George and Al's island. Using economic terminology and your understanding of GDP explain why you included or excluded each item
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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George and Al, stranded on an island, use clamshells for money. Last year George caught three hundred fish and five wild boars. Al grew 200 bunches of bananas. In the two-person economy that George and Al set up, fish sell for one clamshell each, boars sell for ten clamshells each, and bananas go for five clamshells a bunch. George paid Al a total of thirty clamshells for helping him to dig bait for fishing, and also he purchased five of Al's mature banana trees for thirty clamshells each. Explain what the value of GDP is (in clamshells) in George and Al's island. Using economic terminology and your understanding of GDP explain why you included or excluded each item
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