Value-Added Approach to GDP Production Activity Value of Input Value of Output Value-Added Farmer $0 Manufacturer $0.50 $0.25 Wholesaler $1.25 Retailer $0.75 Above is a table on the production activity of bringing an agricultural crop to market. It follows each step of production: the farmer growing, the manufacturer processing and packing, the wholesaler distributing, and the retailer selling to the ultimate purchaser. Please complete the table. Remember, the difference between the value of the output and value of the input is the value-added. Also, please determine the total amount added to GDP from this productive activity. Explain how you arrived at the GDP figure without double counting any part of this production.
Value-Added Approach to GDP Production Activity Value of Input Value of Output Value-Added Farmer $0 Manufacturer $0.50 $0.25 Wholesaler $1.25 Retailer $0.75 Above is a table on the production activity of bringing an agricultural crop to market. It follows each step of production: the farmer growing, the manufacturer processing and packing, the wholesaler distributing, and the retailer selling to the ultimate purchaser. Please complete the table. Remember, the difference between the value of the output and value of the input is the value-added. Also, please determine the total amount added to GDP from this productive activity. Explain how you arrived at the GDP figure without double counting any part of this production.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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