Bob's Building Supplies produced $1 million worth of building supplies in 2017.  Bob's $350,000 worth of these supplies in 2017 to the Custom Construction Company, which used them to produce mode homes worth $2 million in 2017.  Bob's sold another $400,000 of these supplies in 2017 directly to homeowners, who undertook their own home improvements.  Bob's sold the remaining supplies to Eco-Play Playgrounds, which used them to build $750,000 worth of playgrounds in 2018. Under the spending approach, how much did this economic activity contribute to 2017's GDP?   A) $650,000 in building supplies, $2 million in housing, $750,000 in playgrounds B) $650,000 in building supplies, $2 million in housing, $0 in playgrounds  C) $1 million in building supplies, $1,650,000 in housing, $0 in playgrounds  D) $400,000 in building supplies, $1,650,000 in housing, $500,000 in playgrounds E) $400,000 in building supplies, $2 million in housing, $0 in playgrounds F) $400,000 in building supplies, $2 million in housing, $750,000 in playgrounds

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 9CQ
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Bob's Building Supplies produced $1 million worth of building supplies in 2017.  Bob's $350,000 worth of these supplies in 2017 to the Custom Construction Company, which used them to produce mode homes worth $2 million in 2017.  Bob's sold another $400,000 of these supplies in 2017 directly to homeowners, who undertook their own home improvements.  Bob's sold the remaining supplies to Eco-Play Playgrounds, which used them to build $750,000 worth of playgrounds in 2018.

Under the spending approach, how much did this economic activity contribute to 2017's GDP?

 

A) $650,000 in building supplies, $2 million in housing, $750,000 in playgrounds

B) $650,000 in building supplies, $2 million in housing, $0 in playgrounds 

C) $1 million in building supplies, $1,650,000 in housing, $0 in playgrounds 

D) $400,000 in building supplies, $1,650,000 in housing, $500,000 in playgrounds

E) $400,000 in building supplies, $2 million in housing, $0 in playgrounds

F) $400,000 in building supplies, $2 million in housing, $750,000 in playgrounds 

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