Business, 09.04.2020 03:34 genyjoannerubiera
Over a given year, a peanut farm pays its workers a total of $250,000 to harvest 1,000,000 lbs of peanuts. The peanuts are then sold to peanut butter manufacturer for $350,000. The peanut butter manufacturer pays its workers $100,000 to make peanut butter, which it subsequently sells directly to consumers for $1.1 million.
(a) What is the contribution of this activity to GDP when measured by the value of final goods?
(b) What is contribution of this activity to GDP when measured with the value-added approach?
(c) What is the contribution of this activity to GDP using the income approach?
Answers: 3
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Over a given year, a peanut farm pays its workers a total of $250,000 to harvest 1,000,000 lbs of pe...
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