Tom's Fruit uses only labour to collect wild tomatoes, which it sells for $50,000 to Tony's ketchup. Tony's ketchup uses labour and the wild tomatoes purchased from company A to make ketchup, which is sold to final consumers for $100,000. What is the contribution to GDP by Tony's Fruit and Tony's Ketchup?

Tom's Fruit uses only labour to collect wild tomatoes, which it sells for $50,000 to Tony's ketchup. Tony's ketchup uses labour and the wild tomatoes purchased from company A to make ketchup, which is sold to final consumers for $100,000. What is the contribution to GDP by Tony's Fruit and Tony's Ketchup?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Problems and applications Q9