Question

Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed below. Goods Quantities Produced Price Apples 5 $2.00 Bananas 10 1.00 Carrots 20 1.50 Instructions: Enter your answers as a whole number. a. What is this country's GDP

Answer 1

Answer:

$50

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

The GDP of this country is the sum of outputs of this country multiplied by their prices

(5 x $2) + (10 x $1) + (20 x $1.50) = $10 + $10 + $30 =$50