Question

Onewheel manufactures unicycles. In 2021 it had $2 million worth of unicycles in inventory. In 2022 it sold $10 million worth of unicycles to consumers and had $1 million worth of unicycles in inventory. How much did the unicycles produced by Onewheel add to GDP in 2022 ?

A. $9 million
B.$10 million
C.$7 million
D.$11 million

Answer 1

The unicycles produced by Onewheel added $9 million to GDP in 2022.

Step-by-step explanation:

The unicycles produced by Onewheel added $9 million to GDP in 2022.

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country during a specific period. In this case, the $10 million worth of unicycles sold to consumers represents the value of the final goods produced by Onewheel. Since the starting inventory of $2 million worth of unicycles in 2021 and the ending inventory of $1 million worth of unicycles in 2022 are not sold, they are not included in GDP.

Therefore, the unicycles produced by Onewheel that added to GDP in 2022 is $10 million (sales to consumers) - $1 million (ending inventory) = $9 million.