Question

Suppose iPhones cost consumers $200 and USB cables cost consumers $25. What contribution does the production of 2,000 iPhones and 1,200 USB cables make to GDP?

Answer 1

Answer:

$430,000

Explanation:

The contribution to the GDP is equal to the total value of the iPhones+USB cables.

In this problem, we have:

- Cost of one iPhone: $200

- Cost of one USB cable: $25

So, the total value is:

$v=200i+25c$

where:

i is the number of iPhones produced

c is the number of USB cables produced

In this problem:

i = 2000

c = 1200

Substituting, we find

$v=(200)(2000)+25(1200)=\ 430,000$