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kaheart [24]
3 years ago
10

The country of Alaine produces​ 1,000 tons of corn during a year. It is valued at​ $500 per ton. A lobbyist for the corn industr

y in Alaine argues that the total value of corn production should be included in the​ country's GDP for the same year. The​ lobbyist's claim is based on the assumption that A. domestic production is insufficient to meet the domestic demand for corn. B. only a part of the total corn produced every year is consumed in the same year. C. Alaine is the only country that produces corn. D. corn is not used in the production of other goods. E. Alaine does not export corn to other countries.
Business
1 answer:
Debora [2.8K]3 years ago
5 0

Answer:

D. Corn is not used in the production of other goods.

Explanation:

D is the only option that can be an argument for the total value of the corn produced to be included as corn for the same year in the GDP.

This is due to the fact that only the final production is recorded in the GDP, this means that no goods are registered that are going to be part of other productive processes (generally raw materials) since double accounting would be incurred.

If for example, corn were part of another productive process and this productive process begins next year, that part of the corn used to produce that good would be included in the GDP of the year in which the product will be produced (the one that corn is used in the production).

This means that the lobbyist can only rely on option D (include all the value of corn for the year in which it was produced) if in this country the corn is not part of another productive process.

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