Respuesta :
Answer:
(a) $1; $2; $3; $0
(b) $6
Explanation:
Value added in a good is defined as the difference between the selling price and production cost.
(i) Value added by farmer = Bushel of wheat sold to miller
= $1
(ii) Value added by miller:
= Selling price of flour - Purchasing price of wheat
= $3 - $1
= $2
(iii) Value added by baker:
= Selling price of bread - Purchasing price of flour
= $6 - $3
= $3
(iv) Value added by an engineer:
= $0
Because engineer is the final consumer of bread.
Gross domestic product (GDP):
= Value added by farmer + Value added by miller + Value added by baker + Value added by an engineer
= $1 + $2 + $3 + $0
= $6
Answer:
Value Added :- Farmer : $1 ; Miller : $2 ; Baker : $3
GDP = $6
Explanation:
Value Added is the Value of Output less intermediate inputs.
Value Added = Value of Output - Intermediate Inputs
Farmer Value Added = Value of Wheat - Intermediate Inputs
= 1 - 0 = $1
Miller Value Added = Value of Flour - Value of Wheat
= 3 - 1 = $2
Baker Value Added = Value of Bread - Value of Flour
= 6 - 3 = $3
GDP is total value of goods & services produced in an economy, during a given period of time. It is sum of Value Added ; GDP = Σ GVA.
GDP = 1 + 2 + 3 = $6
