Question

Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which it sells to Hamburger Heaven for $11,000. Hamburger Heaven also buys $20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers, which are sold for $5 each. How much do these transactions add to GDP?

a) $86,000
b) $50,000
c) $36,000
d) $31,000

Answer 1

correct option is b) $50,000

Step-by-step explanation:

given data

sells wheat = $5,000

sells flour = $11,000

buy beef = $20,000

hamburgers = 10,000

hamburgers sold = $5 each

to find out

transactions add to GDP

solution

we know that here transactions add to GDP is $50,000

because GDP is the value of the final goods and sale service produced in the any domestic country in a year

so here GDP add is $50,000

so correct option is b) $50,000