Question

Let's say that a country produces only 2 final products during a certain period of time: hats and hairdryers. The quantities are 24 hats and 10 hairdryers at a per unit price of $5, and $15 respectively. The country also produces 2 intermediate products (cotton and metals) to help produce the hats and hairdryers; the total value of the intermediate goods is $50. The country's depreciation is $20. What is this country's NDP (Net Domestic Product) during this period of time

Answer 1

Answer:

the country ndp i.e. net domestic product is $250

Explanation:

The computation of the NDP is shown below;

= GDP - depreciation

= (24 × $5 + 10 × $15)  - $20

= $120 + $150 - $20

= $250

Hence, the country ndp i.e. net domestic product is $250

We ignored the total value of the intermediate goods