Question

Assume that a rancher sells MeDonald's a quarter-pound of meat for 100 Tk and that MeDonald's sells you a hamburger made from that meat for 200Tk. In this case, the value included in GDP should be:

A. 50Tk.
B. 100Tk.
C. 200Tk
. D. 300Tk.

Answer 1

The value included in GDP for a hamburger sold by McDonald's, when considering the value added by both the rancher and McDonald's, is 200 Tk.

Step-by-step explanation:

If a rancher sells McDonald's a quarter-pound of meat for 100 Tk and McDonald's sells a hamburger made from that meat for 200Tk, the value that should be included in GDP is the sum of the values added at each stage of production. In this case, the rancher adds 100 Tk of value (the sale price of the meat), and McDonald's adds another 100 Tk of value (the difference between the sale price of the hamburger and the cost of the meat). Therefore, the total value added to GDP is 200 Tk, making the correct answer C. 200Tk.