Question

Assume that a butcher sells Cookout a quarter-pound of meat for $2 and that Cookout sells you a hamburger made from that meat for $4. In this case, the value included in GDP from your purchase of the hamburger should be____________________

Answer 1

Answer:

$4

Explanation:

Given that

Sale value of quarter-pound of meat = $2

And, the sale value that arises from the meat = $4

So, the value that included in the GDP i.e Gross domestic product is $4 as it reflects the final price of the hamburger rather than the value that is to be intermediate i.e $2 as it shows a quarter pound of meat

So, in the given case only $4 would be included in the GDP