Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100 worth of trees into $150 worth of lumber. It used $100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation's GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100 worth of trees into $150 worth of lumber. It used $100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation's GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Chapter1: Making Economics Decisions
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
Transcribed Image Text:Last year, a small nation with abundant forests cut
down $200 worth of trees. It then turned $100 worth
of trees into $150 worth of lumber. It used $100
worth of that lumber to produce $250 worth of
bookshelves. Assuming the country produces no
other outputs, and there are no other inputs used in
producing trees, lumber, and bookshelves, what is
this nation's GDP? In other words, what is the value
of the final goods the nation produced including
trees, lumber and bookshelves?
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