Question

A baker buys 10 apples from a farmer for $.25/each. The baker uses the 10 apples to make an apple pie that they sell in their bakery for $7.99. What is the total contribution to GDP? (hint: be sure to review intermediate vs. final goods before answering this question).

Answer 1

The baker's total contribution to GDP is $5.49.

What is the total contribution to GDP?

GDP, the gross domestic product is the sum of all final goods and services produced in an economy within a given period.

When calculating GDP, only the value added of final goods and services are included. Intermediate goods are not added.

Contribution to GDP = 7.99 - (10 X 0.25) = $5.49.

To learn more about GDP, please check: https://brainly.com/question/15225458

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