Question

Suppose U.S . Steel Sells steel to Chrysler for $ 5 ,000 , and then this...

Suppose U.S . Steel Sells steel to Chrysler for
$ 5 ,000 , and then this steel is used in a Voyager van that is sold to a new car dealer for $ 17,000 . The car dealer then sells the van to a family for $ 20 , 000 . n this scenario, the contribution to GDP is :
a . $ 42 ,000
b . $ 37 , 000
c . $ 20 , 000
d . $ 17,000

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In this case, the GDP can be measured by adding the value added in all the stages of production:

1st Stage: The values added is $5000

2nd Stage: The value added is $(17000-5000) = $12000

3rd Stage: The value added is $(20000-17000)= $3000

the GDP will be the sum of value added in all stages i.e. $(5000+12000+3000)= $20000

or,

It can be done as GDP is the measure of the final goods produced in the Economy. So, the value of the final good is GDP which $20000 the amount at which the car is ultimately sold.

In both the cases the answer will be same

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose Nucor Steel sells $2,000 worth of steel to Ford, other producers sell $5,000 worth of...
Suppose Nucor Steel sells $2,000 worth of steel to Ford, other producers sell $5,000 worth of other inputs to Ford; Ford then uses the steel and other inputs to make a Taurus which it sells to the car dealership for $15,000. The car dealership sells the car to a school teacher for $18,000. What is the total contribution to GDP made by this entire series of transactions? Select one: a. $22,000 b. $40,000 c. $7,000 d. $18,000   e. $15,000
Which of the following is an example of a capital good?         A new car sold to...
Which of the following is an example of a capital good?         A new car sold to a family A new CD player sold to a teenager A metal-stamping machine used to produce cars sold to an automaker A new CD player sold to an automaker for installation in a car 2. A firm's revenue from selling its product minus the cost of inputs purchased from other firms is called: A) production costs. B) value added. C) profits.  D) investment. 3. A...
1 TASK A government survey determines that typical family expenditures each month in the year designated...
1 TASK A government survey determines that typical family expenditures each month in the year designated as the base year are as follows: 15 chickens, each $5 Rent, monthly $300 Gasoline and car maintenance, $50 Phone service, basic service $30 In the year following the base year, the survey finds: chickens rose to $7 each, apartment rent is $450; gasoline and maintenance rose to $90 and phone service has remained at $30. Find the CPI in the subsequent year and...
Suppose the Central Bank sells $5 million worth of bonds. Calculate the money multiplier in each...
Suppose the Central Bank sells $5 million worth of bonds. Calculate the money multiplier in each case. Also calculate what is the maximum possible change in the money supply if the required reserve ratio is: a) 2% b) 4% c) 5% d) 10% e) 20%
1. True or False a) U.S. gross domestic product is measured by the dollar value of...
1. True or False a) U.S. gross domestic product is measured by the dollar value of all goods and services produced within the borders of the U.S. Output produced by foreigners (either workers or foreign-owned capital) is not included. b) An example of a final good is a natural resource like coal used to produce a good. c) Welfare benefits such as food stamps and health insurance coverage for the poor are not considered as part of government purchases in...
Companies in the U.S. car rental market vary greatly in terms of the size of the...
Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. In 2011, Hertz had 320,000 cars in service and annual revenue of approximately $4.2 billion. Suppose the following data show the number of cars in service (1,000s) and the annual revenue ($ millions) for six smaller car rental companies. Company Cars (1,000s) Revenue ($ millions) Company A 11.5 116 Company B 10.0 133 Company C 9.0...
Suppose the U.S. government issues a two-year bond with a face value of $1,500 and a...
Suppose the U.S. government issues a two-year bond with a face value of $1,500 and a zero coupon. (a)If yearly interest rates on bank deposits are 5 percent, would we expect the yield of the bond to be greater than, less than, or equal to 5 percent? Explain intuitively why this is the case. (b)What will the market price of the bond be, given the yield? (Round to the nearest dollar) (c)Suppose the bond is sold for the price you...
            Growth rate of nominal GDP – Inflation rate   = a.         price level. b.         the growth...
            Growth rate of nominal GDP – Inflation rate   = a.         price level. b.         the growth rate of nominal GDP. c.         the growth rate of real GDP. d.         the growth rate of long-run trend GDP. e.         how much the economy contracts during a recession. 2.         The consumption category does not include purchases a.         of new cars made by consumers. b.         of entertainment services made by consumers. c.         of new clothing made by consumers. d.         of new houses made by consumers....
Assume UCLA Store sells new college textbooks at the publishers' suggested retail prices and pays the...
Assume UCLA Store sells new college textbooks at the publishers' suggested retail prices and pays the publishers an amount equal to 70% of the suggested retail price. The store's other variable costs average 5% of sales revenue and annual fixed costs amount to $420,000. a. Determine the bookstore's annual break-even point in sales dollars. b. Assuming an average textbook has a suggested retail price of $125, determine the bookstore's annual break-even point in units. c. UCLA Store is planning to...
The car dealer has all of their inventory housed in the array seen below. Scroll down...
The car dealer has all of their inventory housed in the array seen below. Scroll down past the data to find out how you can help the car dealer. let inventory = [ { id: 1, car_make: "Lincoln", car_model: "Navigator", car_year: 2009 }, { id: 2, car_make: "Mazda", car_model: "Miata MX-5", car_year: 2001 }, { id: 3, car_make: "Land Rover", car_model: "Defender Ice Edition", car_year: 2010 }, { id: 4, car_make: "Honda", car_model: "Accord", car_year: 1983 }, { id: 5,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT