Question

Consider a hypothetical economy in which a farmer sells 10 kg of wheat to a flour mill for Rs 6 per kg. The mill owner sells the 10 kg of wheat flour to a biscuit company for Rs 12 per kg. The biscuit company produces biscuits and sells 100 packets of biscuits at the rate of Rs 60 in the market. Except for these, there is no other economic activity in this economy. What will be the value of GDP for this economy?

Answer 1

consifer a 10 kg of tryaga in6 seconds

Answer 2

Value of GDP

Explanation:

Gross domestic product (GDP) is the total market value of the goods and services produced by a country’s economy during a specific period of time.

The formula for calculating GDP is:-

GDP = Consumption + Investment + Government Spending + Net Exports

or

GDP = C + I + G + NX

Where,

1.Consumption (C) represents private-consumption expenditures by households and nonprofit organizations

2.Investment (I) represents to expenditures by businesses and home purchases by households

3.Government spending (G) states expenditures on goods and services by the government

4.NX refers to a nation’s exports minus(-) its imports.

For the particular answer refer to the picture below.