A farmer sells wheat to a baker for $2. The baker uses the wheat to make bread, which is sold for $3. What is the total contribution of these transactions to GDP?
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1
Answer:
the transection in total is 3$
Explanation:
final product is only included in the process and the other e.g manufacturing and wheat are included in the that 3$.
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The total contribution of the transactions to GDP is $ 3.
- We know that the baker uses the meat he bought from the farmer for $ 2 dollars to make bread.
- Now, he sold the bread for $ 3.
- $3, the market value of the bread, the final commodity sold, represents the contribution to GDP.
- The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP).
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