In producing a shirt, a farmer sells his cotton to the factory for $4. The factory makes it into a fine fabric and sells it to a brand-name label for $13. The brand-name label sells it to the clothing store for $35, and the clothing store sells the fine shirt, gift-wrapped, for $50. What is the contribution to GDP of the previous sales transactions?
In producing a shirt, a farmer sells his cotton to the factory for $4. The factory makes it into a fine fabric and sells it to a brand-name label for $13. The brand-name label sells it to the clothing store for $35, and the clothing store sells the fine shirt, gift-wrapped, for $50. What is the contribution to GDP of the previous sales transactions?
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
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In producing a shirt, a farmer sells his cotton to the factory for $4. The factory makes it into a fine fabric and sells it to a brand-name label for $13. The brand-name label sells it to the clothing store for $35, and the clothing store sells the fine shirt, gift-wrapped, for $50. What is the contribution to GDP of the previous sales transactions?
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