A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses

Question

3 years ago

7

A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses

them all to produce cider, and $75,000 worth of apples to a grocery store that will sell them to households. How much of the farmer’s sales will be included as apples in GDP?

Business

1 answer:

forsale [732] · Answer 1 · 2021-11-01T03:50:03+03:00

Answer:

$25,000

Explanation:

Now, to get the amount of farmer's sale of that which will be included as apples in GDP.

The farmer’s sales of worth $25,000 will be included as apples in GDP, as the farmer sells the apples to individuals who take them to eat.

GDP is abbreviated as gross domestic product.

GDP represents the goods and services produced within the country over a particular time. The economists used it to determine whether the country is facing recession or having a growth.

As, the $25,000 worth of apples of the farmer's sale is the monetary value of the apples produced by the farmer in the country to sell to individuals for their consumption in their home. As private consumption is one of largest part of GDP.

Thus, the farmer's sales that will be included as apples in GDP is $25,000 worth of apples, as the farmers sells these apples to individuals who take them home to eat.