X Company produced $1 million worth of building supplies in 2017. X Company sold $350,000 worth of these supplies in 2017 to the Y Company, which used them to produce model homes worth $2 million in 2017. X Company sold another $400,000 of these supplies in 2017 directly to homeowners, who undertook their own home improvements. X Company sold the remaining supplies to Z Company, which used them to build $750,000 worth of playgrounds in 2018. Under the value-added approach, how much did this economic activity contribute to 2017's GDP? Note: the value-added approach is also called the production approach. a) $1 million in building supplies, $1,650,000 in housing, $500,000 in playgrounds b) $750,000 in building supplies, $1,650,000 in housing, $0 in playgrounds c) $1 million in building supplies, $1,650,000 in housing, $750,000 in playgrounds d) $650,000 in building supplies, $1,650,000 in housing, $500,000 in playgrounds e) $650,000 in building supplies, $2 million in housing, $0 in playgrounds f) $1 million in building supplies, $1,650,000 in housing, $0 in playgrounds
X Company produced $1 million worth of building supplies in 2017. X Company sold $350,000 worth of these supplies in 2017 to the Y Company, which used them to produce model homes worth $2 million in 2017. X Company sold another $400,000 of these supplies in 2017 directly to homeowners, who undertook their own home improvements. X Company sold the remaining supplies to Z Company, which used them to build $750,000 worth of playgrounds in 2018. Under the value-added approach, how much did this economic activity contribute to 2017's GDP? Note: the value-added approach is also called the production approach. a) $1 million in building supplies, $1,650,000 in housing, $500,000 in playgrounds b) $750,000 in building supplies, $1,650,000 in housing, $0 in playgrounds c) $1 million in building supplies, $1,650,000 in housing, $750,000 in playgrounds d) $650,000 in building supplies, $1,650,000 in housing, $500,000 in playgrounds e) $650,000 in building supplies, $2 million in housing, $0 in playgrounds f) $1 million in building supplies, $1,650,000 in housing, $0 in playgrounds
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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X Company produced $1 million worth of building supplies in 2017. X Company sold $350,000 worth of these supplies in 2017 to the Y Company, which used them to produce model homes worth $2 million in 2017. X Company sold another $400,000 of these supplies in 2017 directly to homeowners, who undertook their own home improvements. X Company sold the remaining supplies to Z Company, which used them to build $750,000 worth of playgrounds in 2018.
Under the value-added approach, how much did this economic activity contribute to 2017's
Note: the value-added approach is also called the production approach.
a) $1 million in building supplies, $1,650,000 in housing, $500,000 in playgrounds
b) $750,000 in building supplies, $1,650,000 in housing, $0 in playgrounds
c) $1 million in building supplies, $1,650,000 in housing, $750,000 in playgrounds
d) $650,000 in building supplies, $1,650,000 in housing, $500,000 in playgrounds
e) $650,000 in building supplies, $2 million in housing, $0 in playgrounds
f) $1 million in building supplies, $1,650,000 in housing, $0 in playgrounds
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