In 2017, $5000 worth of cotton was produced in a country called X. This cotton was then turned into $7000 worth of thread, also in country X. This thread was then sold to a company in country Y where it was turned into cloth. This cloth was sold back to a company located in country X for $10000. This company in country X turned the cloth into shirts with a market value of $15000. $14000 worth of the shirts were purchased by consumers in country X and the remaining shirts were unsold. What was GDP for country X in 2017? Group of answer choices 1. $12000 2. $5000 3. $7000 4. $15000
In 2017, $5000 worth of cotton was produced in a country called X. This cotton was then turned into $7000 worth of thread, also in country X. This thread was then sold to a company in country Y where it was turned into cloth. This cloth was sold back to a company located in country X for $10000. This company in country X turned the cloth into shirts with a market value of $15000. $14000 worth of the shirts were purchased by consumers in country X and the remaining shirts were unsold. What was GDP for country X in 2017? Group of answer choices 1. $12000 2. $5000 3. $7000 4. $15000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In 2017, $5000 worth of cotton was produced in a country called X. This cotton was then turned into $7000 worth of thread, also in country X. This thread was then sold to a company in country Y where it was turned into cloth. This cloth was sold back to a company located in country X for $10000. This company in country X turned the cloth into shirts with a market value of $15000. $14000 worth of the shirts were purchased by consumers in country X and the remaining shirts were unsold. What was GDP for country X in 2017?
Group of answer choices
1. $12000
2. $5000
3. $7000
4. $15000
Expert Solution
Step 1
Gross Domestic Product: It refers to the value of all the final goods and services produced domestically, in a given year.
GDP = C+I+G+X-M
Where C is consumtion
I is investment
G is government expenditure
X is exports
M is imports
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