Consider two tractors manufactured by John Deere in Illinois in 2019 . During 2019, John Deere sells one of its two tractors to Farmer Brown for $30,000. Later in the same year, Farmer Brown sells the tractor to Farmer Seiler for $22,000. The second tractor, with a market value of $40,000, is unsold at the end of 2019 and it remains in John Deere's inventory. The transactions just described contribute how much to GDP for 2019? Question 17 options: A) $70,000 B) $92,000 C) $30,000 D) $52,000
Consider two tractors manufactured by John Deere in Illinois in 2019 . During 2019, John Deere sells one of its two tractors to Farmer Brown for $30,000. Later in the same year, Farmer Brown sells the tractor to Farmer Seiler for $22,000. The second tractor, with a market value of $40,000, is unsold at the end of 2019 and it remains in John Deere's inventory. The transactions just described contribute how much to GDP for 2019? Question 17 options: A) $70,000 B) $92,000 C) $30,000 D) $52,000
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.5IP
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Consider two tractors manufactured by John Deere in Illinois in 2019 . During 2019, John Deere sells one of its two tractors to Farmer Brown for $30,000. Later in the same year, Farmer Brown sells the tractor to Farmer Seiler for $22,000. The second tractor, with a market value of $40,000, is unsold at the end of 2019 and it remains in John Deere's inventory. The transactions just described contribute how much to GDP for 2019?
Question 17 options:
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Expert Solution
Step 1
Total tractor sold=2
Price=30,000+22,000=52,000
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