Cost ofMaterialsValue ofSales$ 100ParticipantsFarmer$ 0%24Cone factory100250and icecream-makerMiddleperson250400Vendor4005001) Calculate the value added at each stage of production(11) Calculate the contribution to GDP from the goodF3F4F5F6F7F8F9F10F11&团

(i) Value added can be calculated by using the following formula: Value added=Value of sales - cost…

Cost of Materials Value of Sales Participants $ 0 $ 100 Farmer Cone factory and ice cream-maker Middleperson 100 250 250 400 Vendor 400 500 1) Calculate the value added at each stage of production (1i) Calculate the contribution to GDP from the good

Cost of Materials Value of Sales Participants $ 0 $ 100 Farmer Cone factory and ice cream-maker Middleperson 100 250 250 400 Vendor 400 500 1) Calculate the value added at each stage of production (1i) Calculate the contribution to GDP from the good

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 18RQ: What are the two main difficulties that arise in comparing different comparing GDP?

See similar textbooks

Related questions

Q: Fill in the blank for the following: GDP is the market value of all produced in a given period.…

A: The raw material is the unprocessed material that is used to produce finished products for selling…

Q: Which of the following does NOT add to U.S. GDP?a. Boeing manufactures and sells a plane to…

A: The Gross Domestic Product (GDP) is the summation of the final value of all the final goods and…

Q: In an economy, Real GDP (base year = 1996) is $125 billion and the Nominal GDP is $150 billion.…

A: GDP deflator formed to estimate the inflation .In the other way it is known as the implicit price…

Q: Calculate GDP using 1) the Income Approach 2) Expenditure Approach. (all figures are in billions…

A: The measure that depicts the value of final goods and services being produced within a span of time…

Q: Fill in the blank for the following : GDP is the market value of all ............ produced in a…

A: Pens, flour, oranges, and caps are examples of goods that are commonly measurable. Healthcare…

Q: A farmer sells wheat to a baker for $2. The baker uses the wheat to make bread, which is sold for…

A: Intermediate goods are the goods used to create another product. Intermediate goods are inputs in…

Q: Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille…

A: Gross domestic product is the sum of value of final goods and services produced in the economy…

Q: Which of the following WOULD be counted in GDP? Baking a cake for a family gathering Buying some…

A: GDP stands for Gross Domestic Product of the economy. It is the final value of goods and service…

Q: What is the GDP of this economy? Cost of materials Value of sales Value added 250 Farmer Ice-cream…

A: Gross domestic product (GDP) refers to the value of goods and services produced within the domestic…

Q: Q.3.1 Calculate the value of gross domestic product (GDP) at market prices. Q.3.2 Calculate the…

A: Solution in step 2

Q: Which of the following items is included in thecalculation of GDP?a. Purchase of 100 shares of…

A: Production means producing goods and services by using raw materials in such a way that productivity…

Q: Arthur sells $100 worth of cotton to Bob. Bob turns the cotton Into cloth, which he sells to Camille…

A: In an economy, value added method is one of the way to compute the overal income or contribution of…

Q: Which of the following would be included in the calculation of GDP? Repairs to your car done by…

Q: In 2003, the economy of Boonton’s nominal GDP was $1300 and its GDP deflator was 200. Calculate…

A: Nominal GDP includes both the growth and prices. Real GDP shows only the growth in the economy. Real…

Q: a. Calculate GDP as the value added in production. b. Calculate GDP as spending on final goods and…

A: Gross domestic product (GDP) is the standard proportion of the worth added made through the…

Q: Discuss the effectiveness of Gross Domestic Product (GDP) as a measure a measure of the standard of…

A: Gross Domestic Product(GDP) is the cumulative market value of every final goods and services…

Q: The truck manufacturer purchased $8,000 in intermediate goods produced this year by domestic firms…

A: Gross domestic product or income refers to the total market value of goods and services produced…

Q: Question 3 Participants Cost of Value of Materials Sales Farmer $ 0 $ 100 Cone factory 100 250 and…

A: Hi, you have asked multiple questions in this session and we are allowed to answer only one…

Q: The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production and…

A: The gross domestic product implicit price deflator, often known as the GDP deflator, is a metric…

Q: During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing…

A: GDP: The GDP is the value of all finished goods and services or products produced in the economy…

Q: 2. Given are the following sets of accounts: RM (Million) Compensation to employees Proprietor's…

A: Use below formula to find the GDP:GDP=Compensation of employees+Interest + rent+profit+indirect…

Q: You just bought an old car a couple years ago for $1,000 and put about $5,000 of parts and labor…

A: Secondhand goods, such as used cars, are excluded from GDP calculations. When these things were…

Q: The gross domestic product (GDP) is looking at the total production of goods and services that are…

A: Introduction The gross domestic product (GDP) is looking at the total production of goods and…

Q: A mining company acquires new government licenses to drill in land the company already owns. Is…

A: Yes. If a mining company acquires new government licenses to drill in land the company already owns.…

Q: included in the year’s GDP

A: Gross Domestic Product (GDP) is defined as the value of all the final commodities and services…

Q: Identify which of the following would be included in GDP as calculated by the final goods and…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: Gross domestic product (GDP) figure gives an understanding of a market's Select one: a Economic…

A: Gross Domestic Product refers to value of goods and services produced in a country in a given period…

Q: Which of the following transactions would NOT be counted in GDP? Select one: a. Nike builds a retail…

A: GDP refers to gross domestic product which is accounted by addition of all the values of final goods…

Q: Participants Cost of Value of Materials Sales Farmer $ 0 $ 100 Cone factory 100 250 and ice…

A: In this question , we will use the value added method. In this method , we add value added in each…

Q: Which of the following methods of calculating GDP would NOT be accurate when the information on the…

A: Gross domestic product (GDP) measures the market value of final goods and services produced by an…

Q: Which of the following expenditures would notbe included in GDP?a. Purchase of a new lawnmowerb.…

A: GDP is the Gross Domestic Product which is the final value of all the commodities and services…

Q: Which of the following is not included in 2016's GDP? the commission earned by a headhunter when she…

A: Answer: Correct option: D (the value of a motor that is used in the production of a lawn mower)…

Q: Which of the following economic activities are included and which are excluded in calculating this…

A: A homeowner who mows her own lawn is not included in the GDP calculation because it does not involve…

Q: Suppose we have the following information about a car manufacturer: car sales £1000, steel purchases…

A: GDP is the value of all final goods and services produced in an economy over a given period of time.…

Q: A firm manufactured a computer hard desk and keyboard and sell to a computer manufacturing firm for…

A: Contribution to GDP is the final added value. It is the monetary value of final added goods and…

Q: Define what is a country’s gross domestic product (GDP) and list and explain its various components.

A: GDP is significant since it gives information about an economy's size and performance.Real GDP…

Q: ACTIVITY 1: Components of GDP Which component of GDP would each of these fit into? 1. Mechanic…

A: Activity 1. Consumption, investment, government expenditure, and net exports are all components of…

Q: Imports Exports Consumer 80 billion 40 billion 185 billion semi-durables Profits 320 billion.…

A: Gross domestic product (GDP) is the standard degree of the value introduced created through the…

Q: In the expenditure approach of measuring GDP, which of these would not be counted as government…

A: Gross Domestic Product is defined as the final value of all the goods and services which are…

Q: Which of the following are counted in this year GDP? Justify your answer. a) A local car dealer sold…

A: Gross Domestic Product refers to the value of all the finished goods and services produced inside…

Q: Which of the following is included in Gross Domestic Product (GDP)? Select one: a. the buying and…

A: Gross Domestic Product (GDP) is an effective tool to determine the output level or income level…

Q: Calculate the GDP using the Expenditure Approach Item Value Consumption Compensation of labor…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: Determine if the following would be included (I) or excluded (E) from the calculation of GDP. (d)…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: The investment component of gross domestic product (GDP) can be broken down into two main categories…

A: GDP = Personal consumption Expenditure + Government spending + Gross Private investment + Net…

Q: GDP is defined as the market value of all final goods and services produced within a country in a…

A: There are three methods to determine the gross domestic product (GDP) of a country: the income…

Q: Which of the following transactions are or are not included in GDP? 1. The pollution created when…

A: 1)Not included in GDP Because externalities does not account for GDP. 2)Not included in GDP Because…

Q: For each situation, identify if it is included in GDP, then identify the category C, I, G, or X-M…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: Gross domestic product (GDP) is a key measure of the national economy. a) Define GDP and describe…

A: GDP is the sum total of the final values of all goods and services produced in a year.

Q: The expenditures on tires by the Ford Motor Company are not included directly in GDP statistics…

A: GDP can be understood as the monetary value of all the final goods and services produced in an…

Question

Cost of
Materials
Value of
Sales
$ 100
Participants
Farmer
$ 0
%24
Cone factory
100
250
and ice
cream-maker
Middleperson
250
400
Vendor
400
500
1) Calculate the value added at each stage of production
(11) Calculate the contribution to GDP from the good
F3
F4
F5
F6
F7
F8
F9
F10
F11
&
团

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What are the main components of measuring GDP with what is demanded?
What are the two main difficulties that arise in comparing different comparing GDP?
Why is the GDP deflator not an accurate measure of inflation as it impacts a household?
What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?
Would you usually expect GDP as measured by what is demanded to be greater than GDP measured by what is supplied, or the reverse?
Cross country comparisons of GDP per capita typically use purchasing power parity equivalent exchange rates, which are a measure of the long run equilibrium value of an exchange rate. In fact, we used PPP equivalent exchange rates in this module. Why could using market exchange rates, which sometimes change dramatically in a short period of time, be misleading?
Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Which of the following are included in GDP, and which are not? The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother A used car sale A new car sale The greater variety of cheese available in supermarkets The iron that goes into the steel that goes into a refrigerator bought by a consumer.