Question

Jim's Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's contribution to GDP isA) $900.B) $1000.C) $1100.D) $1800

Answer 1

C) $1100

Explanation:

Jim Nursery produces and sells $1100 worth of flowers

wages paid to the worker= $700

taxes paid= $100

and interest paid on loan = $200

GDP is the monetary value of goods and services produced in country in financial year. Jim's Nursery produces and sells $1100 worth of flowers. hence his contribution to GDP is $1100.