EBK MINDTAP ECONOMICS FOR BOYES/MELVIN'
10th Edition
ISBN: 9781305387614
Author: MELVIN
Publisher: VST
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Question
Chapter 5, Problem 1E
To determine
The below table lists the stages in the production of a personal computer. Find the value of the computer in
| Stage | Value Added |
| Company Manufacture | $100 |
| Assembly | $250 |
| Wholesaler | $500 |
| Retailer | $1,850 |
Expert Solution & Answer
Answer to Problem 1E
The value of computer in the GDP is
Explanation of Solution
The real value of GDP at each stage is calculated as follows:
| Stage | Value Added | Real Value Added |
| Components Manufacture |
|
|
| Assembly |
|
|
| Wholesaler |
|
|
| Retailer |
|
|
| Total Value |
|
Hence, the value of computer in the GDP is
Economics Concept Introduction
Gross Domestic Product- Gross Domestic Product or GDP is referred to as the market value of all the services and final goods which has been produced in a period.
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Chapter 5 Solutions
EBK MINDTAP ECONOMICS FOR BOYES/MELVIN'
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