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horrorfan [7]
2 years ago
8

One bag of oranges is sold for $6.00 to a company that turns them into juice which is sold to consumers for $12.00. Another bag

of oranges is purchased by a grocery store for $6.00 who then sells it to a consumer for $7. Taking these four transactions into account, how much is added to GDP?
Business
1 answer:
Sedaia [141]2 years ago
6 0

Answer:

19 is added to the gdp

Explanation:

6 (bag of oranges) + 6(bag of oranges) + (12-6)(juice) + (7-6)(bag of oranges) = 19 is added to the gdp

In this case I'm using the income approach to calculate GDP, which includes the income earned by wages to labor (not present), rent by land (you may say that the original bag of oranges), the return on capital (interest, not present),and  entrepreneur’s profits (juice and grocery store)

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