Value added. Company A sells four tires to Company X for $200. Company B sells a CD player to Company X for $150. Company X installs both in a car, which sellsfor $2500. What is the contribution of the Company B to GDP?OA. $0OB. $2500OC. $2150OD. $350

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and…

Answered: Value added. Company A sells four tires…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm manufactured a computer hard desk and keyboard and sell to a computer manufacturing firm for $100 and $50 respectively. The computer manufacturing firm uses the hard desk and keyboard and produced a computer and sold for $500. What is the total contribution of these transactions to GDP?
In 2013, Blackberry bought $100 million in parts in New York and $150 million in parts in Ontario to produce $600 million worth of phones in Ontario. In 2013, Blackberry sold $500 million in phones and paid $200 million in wages, $40 million in interest, and $60 million in rent. Blackberry sold the remaining phones in 2014. Based on this information, what was blackberry's value-added contribution to 2013 Canadian GDP? 1)$600 million 2)$500 million 3)$450 million 4)$350 million 5)$200 million
How does this impact GDP?
4. Which of the following transactions will be counted in the GDP a) Purchase of a used car. b) Income gained by an American citizen from a company he owns but which operates in Italy. c) Sale of a share of General Motors on the stock market. d) Your production of "home-made" bread for your family's use. e) The production of steel for use in automobile production, that remained in inventory at year's end. f) The sale of steel used in automobile production. g) You fix your neighbor's car in exchange for his helping you with your plumbing, but neither of you reports income to the IRS. h) You fix your neighbor's car in exchange for his helping you with your plumbing, and you report the value of these services to the IRS as income. i) Services of a prostitute in a jurisdiction where prostitution is illegal
In 2020, Delorse Greenlee purchased a 1892 painting by Paul Cezanne for $250 million. She also paid a 1 percent commission to the auction house that sold the painting. What was the contribution of these transactions to GDP in the year 2020? Select one: a. $2.5 million b. $252.5 million C. $25 million d. $0
I need an explanation why the answer is 11,000. Thank you.
Which of the following transactions are or are not included in GDP? 1. The pollution created when building an electric car battery. 2. Your parent washes, dries, and folds your laundry. 3. You consume a meal at Jack in the Box. 4. You buy a Rolex watch on the streets of Redwood City. 5. You volunteer to help clean up at your church after services on Sunday. 6. You write a Yelp review of Dr. Eck's restaurant.
What activity is not included in the GDP? O Emily cooked some soup for the customers in the restaurant You paid $20 to your neighbor for helping you to fix the fence of your backyard Emily purchased an old car Emily purchased a new car
Which is not considered to be a GDP investment? The building of an apartment complex Additions to inventories at steel plants Purchase of shares of company stock Construction of a new factory
Ben is a farmer who grows oranges. In the current year Ben produces oranges valued at $54,087, half of which he sells directly to consumers, and half of which he sells to Tropicana to make orange juice. Tropicana produces orange juice and sells it to consumers for $84,605. What is the value of GDP in this simple economy? Enter a whole number with no commas and no dollar sign, such as 1876.
A farmer sells cucumbers to a food processor for $1.50 per pound. The food processor makes the cucumbers into pickles and sells each jar of pickles to a grocery store for $2.50. The grocery store sells each jar of pickles for $3.00. How much do these transactions add to GDP? b. $7.00 c. $1.50 d. $3.00
Carl B. Cotton owns a 10-acre farm filled with cotton plants. Each year he hires a few workers to pick the cotton and he sells it to Candy's Cloth for $5,000. Candy uses the cotton to makes bolts of cloth that she sells for $9,000 to Ted's T-Shirts. Ted makes t-shirts with the cloth and sells the shirts to consumers for a total of $12,000. As a result of these transactions GDP increases by $ . The value added by Carl is $ . The value added by Candy is $ . The value added by Ted is $

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Value added. Company A sells four tires to Company X for $200. Company B sells a CD player to Company X for $150. Company X installs both in a car, which sells for $2500. What is the contribution of the Company B to GDP? OA. $0 OB. $2500 OC. $2150 OD. $350