n 2015, a producer of wine purchased ingredients for $1 million, labor for $0.5 million, and equipment for $0.5 million. The producer then sold the wine at wholesale to a retailer for $3 million. Finally, the retailer sold the wine to customers for $3.5 million. What was the wine producer's total effect on GDP?

Q: An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to…

A: Investment refers to the amount of financial expenditure planned on investment commodities like…

Q: A farmer sells wheat to a baker for $2. The baker uses the wheat to make bread, which is sold for…

A: Intermediate goods are the goods used to create another product. Intermediate goods are inputs in…

Q: Indicate what components of GDP (if any) each of the following transactions would affect. Check all…

A: The economics as a study is based upon the basic idea of scarcity, where the resources which are…

Q: Identify the contribution to this year's GDP by entering a numerical value. Do not enter dollar…

A: GDP refers that Gross domestic product which means that cost of production of goods and services by…

Q: Suppose Nucor Steel sells $2,000 worth of steel to Ford, other producers sell $5,000 worth of other…

A: Answer: GDP refers to the value of only final goods and services produced in a year. It does not…

Q: Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille…

A: GDP stands for Gross Domestic Product, which is a measure of the total value of goods and services…

Q: produces apples, 1200 to consumers (final users) and 700 to Firm 2. Firm 2 produces apple juice,…

A: In GDP we include only the value of final goods and services produced within the given fiscal year.…

Q: During 2009, the leather company produced enough leather for 20 couches.  The couch manufacturing…

A: GDP: The GDP is the value of all finished goods and services or products produced in the economy…

Q: In producing a shirt, a farmer sells his cotton to the factory for $4. The factory makes it into a…

A: The contribution to GDP of the previous sales transactions is $50.   Explanation:The contribution to…

Q: You just bought an old car a couple years ago for $1,000 and put about $5,000 of parts and labor…

A: Secondhand goods, such as used cars, are excluded from GDP calculations.  When these things were…

Q: A farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat…

A: According to question, A farmer produces a bushel of wheat and sells it for $20.00 to a Miller. The…

Q: During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing…

A: GDP based on value added method = value sold to leather company 16000 + 4000 + value added by couch…

Q: Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100…

A: Final value of book shelves = $250 Value of unused lumber in inventory = $(150-100)= $50 Value of…

Q: In 2013, Blackberry bought $100 million in parts in New York and $150 million in par Ontario to…

A: In 2013, Blackberry bought $150 million in parts in Ontario to produce $600 million worth of phones…

Q: Which of the following is not included in 2016's GDP? the commission earned by a headhunter when she…

A: Answer: Correct option: D (the value of a motor that is used in the production of a lawn mower)…

Q: A car manufacturing company produces a $20,000 car using $16,000 worth of components and$4,000 worth…

A: GDP is the gross domestic product of an economy, that calculates the total value of all final goods…

Q: During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing…

A: Here GDP will be calculated based on value added in each process

Q: A Canadian company imported 100 TV sets from Korea for $250 each in 2018. The company sold 80 of…

A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…

Q: Which of the following is NOT included in 2013's GDP?   Group of answer choices the commission…

A: 2013's GDP is the sum of the monetary value of all final goods and services produced in an economy…

Q: A car air conditioning system to be inserted in new cars was manufactured in 2019 and sold to the…

A: GDP refers to the gross domestic product which measures the monetary value of all final goods and…

Q: What components of GDP, if any, would each of the following transactions affect? Explain. a) Jahzara…

A: GDP can be computed in three approach, using expenditures, incomes, or production. According to the…

Q: In 2013, Blackberry bought $100 million in parts in New York and $150 million in parts in Ontario to…

A: the term value added refers to the contribution of the factors of production (i.e. capital and…

Q: A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into…

A: GDP is the gross domestic product which is the value of total goods and services produced in an…

Q: A farmer sells wheat to a baker for £5. The baker uses the wheat to make bread, which is sold for $8…

A: A farmer sells wheat to a baker for £5. Note: Assuming farmer does not use any intermediate goods…

Q: Ben is a farmer who grows oranges. In the current year Ben produces oranges valued at $54,087, half…

A: GDP refers that Gross domestic production which means value addition of production of goods and…

Q: Indicate what components of GDP (if any) each of the following transactions would affect. Check all…

A: Answer in step 2

Q: Carl B. Cotton owns a 10-acre farm filled with cotton plants. Each year he hires a few workers to…

A: Gross Domestic Product (GDP) is the value of the final goods and services produced in an economy in…